Rent vs Buy Cacluclator

Home equity is the portion of your home that you truly "own." While rent is a monthly expense that is gone forever, a mortgage payment helps you build equity—the difference between your home’s value and what you owe.

Amortization is the schedule of your mortgage payments. Over time, the amount of your payment going toward the loan balance (principal) increases, while the amount going toward interest decreases.

Appreciation is the increase in your home’s value over time due to market changes. This is one of the primary ways buying builds long-term wealth compared to renting.

Property Taxes are the fees paid to your local government to fund public services. When you buy, these are usually rolled into your monthly mortgage payment (escrow), but can also be waived and paid outside of your mortgage.

Homeowners insurance is a policy that protects your investment against damages. While renters have "Renters Insurance" for their belongings, Homeowners Insurance covers the entire structure.

Maintenance and repairs are the costs associated with keeping a home in good shape. Renters rely on landlords for this, but homeowners should budget roughly 1% of the home's value annually for upkeep.

Closing costs are the one-time fees paid at the end of a home purchase (typically 2-5% of the loan amount). Our calculator helps you determine how many years you need to stay in a home to "break even" on these costs.

Tax benefits of homeownership are potential deductions on federal income taxes for mortgage interest and property taxes. This is a financial "win" that isn't available to renters.

A fixed-rate mortgage is a loan where your interest rate never changes. Unlike rent, which your landlord can increase every year, a fixed-rate mortgage keeps your housing cost predictable for 15 to 30 years.