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HomeCalc

Buy or rent

Compare the total cost of buying a home with renting one over the same period.

Figures follow US federal and state law, with every source cited and dated.

The home and the rent
$
The price you plan to pay.
$
12.5% of the price
$
What the tenant pays each month.
years
How long you expect to live in or hold the home.
State
LoanLoan: 30 years at 6.5% a year
years
%
One rate for the whole loan. For a promotional rate that later becomes a floating rate, use the mortgage calculator.

Monthly payment: $4,424.48

Results

Over 10 years, buying costs $120,335.24 less than renting under these assumptions.

United States · California · USD

BreakdownCost of owning: $292,364.41 · Renting: $412,699.65

Owning

Interest paid
$424,369.87
Deposit interest forgone on the down payment and buyer costs
$52,924.45
Buyer costs
$10,203.19
Upkeep reserve
$80,000.00
Resale costs
$0.00
Less: value gained
-$275,133.10
Cost of owning
$292,364.41

Renting

Rent paid over 10 years (rising 3% a year)
$412,699.65

Principal repaid builds your equity, so it is not counted as a cost.

Growth rates and the deposit rate are assumptions, not forecasts. If you change them above, the sentence changes too.

Note

Every figure on this page is an estimate based on the values you entered and on defaults from US federal law, the selected state's law and common market practice, each current as of the verification date shown next to it. It is not financial, legal or tax advice. Your actual rate, APR, closing costs and taxes are set by your lender, the company handling your closing and your county when you buy. Your Loan Estimate and Closing Disclosure show the real figures; check them before you sign. This site stores none of your data; everything you entered lives in the page address.

Assumptions you can change

  • Home price growth per year

    3%

    Assumption

    The assumed change in the home's price each year. It can be negative. This is an assumption, not a forecast.

  • Rent growth per year

    3%

    Assumption

    The assumed rise in rent each year. This is an assumption, not a forecast.

  • Deposit rate

    4%

    Assumption

    What the same cash would earn each year in a deposit. This is an assumption, not a forecast.

  • Upkeep reserve

    1%

    Assumption

    The share of the price set aside each year for repairs and replacements. This is an assumption, not a forecast.

  • Resale costs

    0%

    Source: market convention

    Taxes and the brokerage fee when you sell at the end, on the expected sale price.

  • Buyer costs

    $10,203.19

    From the home-buying costs tool

    The taxes and fees the buyer pays on the purchase, from the home-buying costs tool.

    See the cost details

The link carries only the numbers you entered. The site stores nothing.

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