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Rent Vs Buy Mortgage Calculator: Rent or Buy Home?

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Rent Vs Buy Mortgage Calculator Sign
Rent Vs Buy Mortgage Calculator

This calculator will calculate and compare the cost of renting to the cost of buying a home -- including all of the home ownership costs that mortgage brokers and real estate agents hope you will ignore. Includes a printer-friendly rent or buy home report. The $ecret tab includes:

  • Double your pleasure? Then double your costs!
  • Don't be an ostrich.
Learn More

Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None

Load or Clear Sample Entries:

To load sample entries that you can change as needed, tap the "Sample" button. To clear sample entries, tap the "Clear" button.

Rental and Mutual Section

Rental and Mutual Section:

This section is for entering rent-related amounts as well as for entering factors that apply to both renting and buying.

Monthly rent:Rent pmt:Monthly rent:Monthly rent payment:

Monthly rent payment:

Enter the amount of the monthly rent payment. Enter as a dollar amount, but without the dollar sign and any commas.

Utilities:Monthly utilities:Monthly utilities not included in rent:Monthly utilities not included in rent payment:

Monthly utilities not included in rent payment:

Enter the total amount of any monthly utilities you pay that are not included in the rent payment (heat, laundry, electric, trash removal, garage rental, etc.). Enter as a dollar amount, but without the dollar sign and any commas.

Insurance:Rental insurance:Monthly rental insurance:Monthly rental insurance:

Monthly rental insurance:

Enter the monthly rental insurance premium. Enter as a dollar amount, but without the dollar sign and any commas. If you are not paying insurance on the contents of your apartment, leave this field blank.

Inflate rate:Inflation rate:Expected annual inflation rate:Expected annual inflation rate:

Expected annual inflation rate:

Enter the annual inflation rate. Enter as a percentage, but without the percent sign (for .04 or 4%, enter 4). This is used to inflate the costs of rent, insurance, maintenance, dues and property taxes for the length of time you plan to stay in the purchased home.

Savings ROI:Savings ROI:Rate you expect to earn on savings:Interest rate you expect to earn on savings:

Interest rate you expect to earn on savings:

Enter the annual interest rate you expect to earn on the down payment and closing costs you will invest if you decide to rent instead of buy. Enter as a percentage, but without the percent sign (for .07 or 7%, enter 7).

Home Buying Section

Home Buying Section:

Enter your anticipated home purchase and ownership costs in this section.

Home price:Price of home:Purchase price of home:Purchase price of home:

Purchase price of home:

Enter the total purchase price of the home -- not including closing costs. Enter as a dollar amount, but without the dollar sign and any commas.

Down pmt:Down payment:Down payment amount:Down payment amount:

Down payment amount:

Enter the amount you will have available to put down on the house after you have set aside the cash you will need to pay the closing costs. Enter as a dollar amount, but without the dollar sign and any commas.

Mtg years:Mortgage years:Mortgage term in years:Length of mortgage term in years:

Length of mortgage term:

Enter the number of years you are financing the home for. The longer it takes you to repay the home loan, the more you will pay in finance charges.

Mtg rate:Mortgage rate:Mortgage's annual interest rate:Mortgage's annual interest rate:

Mortgage's annual interest rate:

Enter the annual interest rate of the mortgage. Enter as a percentage, but without the percent sign (for .0625 or 6.25%, enter 6.25).

Points:Mortgage points:Points on purchase of home:Discount points on purchase of home:

Discount points on purchase of home:

Discount points are paid up front in order to reduce the interest rate of your mortgage. Each point represents 1% of your mortgage balance. Enter as a percentage, but without the percent sign (for .01 or 1%, enter 1).

Origination:Origination fees:Origination fee percentage:Mortgage origination fee percentage:

Mortgage origination fee percentage:

Enter the percentage (often as high as 1% of the loan amount) that the lending institution will charge for processing and originating a loan. Enter as a percentage, but without the percent sign (for .01 or 1%, enter 1).

Loan costs:Other loan costs:Other loan costs:Other loan costs:

Other loan costs:

The total of other loan related costs, such as filing fees, transfer fees, appraiser fees, etc. Enter as a dollar amount, but without the dollar sign and any commas.

PMI %:PMI percent:Private mortgage insurance (PMI %):Private mortgage insurance (PMI %):

Private mortgage insurance (PMI %):

If your downpayment is less than 20% of the value of the home you are buying, you may be required to pay mortgage insurance of somewhere between 0.2% and 0.5% of your principal balance each month. Enter as a percentage, but without the percent sign (for .004 or .4%, enter .4).

Insure rate:Insurance rate:Homeowner's insurance rate:Homeowner's insurance rate:

Homeowner's insurance rate:

Your homeowner insurance rate -- entered as a percentage of the value of your home. Typical rate is 0.5%. Enter as a percentage, but without the percent sign (for .005 or .5%, enter .5).

Assoc dues:Association dues:Monthly association dues:Monthly homeowner association dues:

Monthly homeowner association dues:

If will be forced to join a homeowner association when you purchase the home, enter your monthly dues in this field. Enter as a dollar amount, but without the dollar sign and any commas.

Maintenance:Maintenance avg:Average monthly maintenance:Average monthly maintenance cost:

Average monthly maintenance cost:

Enter the amount you expect to spend on repairing and maintaining your home. A rule of thumb is 1% of the purchase price of the home per year. So if the home price is $200,000, the monthly maintenance costs you should budget for would be $166.67 (200000 X .01 ÷ 12). Enter as a dollar amount, but without the dollar sign and any commas.

Utilities:Utilities avg:Average monthly utility expense:Average monthly home utility expense:

Average monthly home utility expense:

Enter the amount you expect to spend on utilities each month (fuels, electric, trash, water & sewer, etc.). According to a recent study by the Census Bureau, the average utility costs for a home ran about 1.5% of the purchase price per year. So if the home price is $200,000, the monthly utility costs you should budget for would be $250.00 (200000 X .015 ÷ 12). Enter as a dollar amount, but without the dollar sign and any commas.

Ann prop tax:Annual prop tax:Annual property tax:Annual property tax:

Annual property tax:

Enter the amount of property taxes you expect to pay each year. Property taxes typically run about 1.1% of the home price per year. So if the home price is $200,000, the annual property tax costs you should budget for would be $2,200.00 (200000 X .011). Enter as a dollar amount, but without the dollar sign and any commas.

Inc tax rate:Income tax rate:State plus Federal income tax rate:Combined state and federal income tax rate:

Combined state and federal income tax rate:

Enter your combined state and federal income tax percentage rate. Enter as a percentage, but without the percent sign (for .28 or 28%, enter 28).

Apprec rate:Appreciation rate:Annual appreciation rate:Expected annual appreciation rate:

Expected annual appreciation rate:

Enter the percentage amount you expect your house to appreciate by each year. Enter as a percentage, but without the percent sign (for .03 or 3%, enter 3).

Own years:Ownership years:Years you will stay at this property:Number of years you will stay at this property:

Number of years you will stay at this property:

Enter the number of years you expect to rent or own the property you are considering. Typically, if you plan to move out of a home in less than 5 years from the date of purchase, you may be better off renting. That is because the first 5-years of mortgage payments are mostly interest.

Realtor rate:Commission rate:Realtor commission rate:Realtor commission rate:

Realtor commission rate:

Enter the percentage of your home selling price that you expect to pay a real estate agent or broker when it is time to sell your home. Enter as a percentage, but without the percent sign (for .07 or 7%, enter 7).

Rent Vs Buy
RentBuy
Pmt:Pmt:Payment:Payment:

Rent payment:

This is the monthly rent payment as entered in the top of the rent vs buy mortgage calculator.

Pmt:Pmt:Payment:Payment:

House payment:

This is the monthly principal and interest (PI) payment based on your entered mortgage amount, interest rate, and loan term.

Renting CostsBuying Costs
Pmts:Pmts:Rent pmts:Rent payments:

Rent payments:

This is the inflation-adjusted total of all rental payments for the number of years you plan to stay in the purchased house.

Int:Int:Interest:Interest cost:

Interest cost:

This is the total of all interest payments you will pay on your mortgage for the number of years you plan to stay in the purchased house.

Insure:Insure:Insurance:Insurance:

Rental insurance:

This is the inflation-adjusted total of all rental insurance premiums for the number of years you plan to stay in the purchased house.

Insure:Insure:Insurance:Insurance:

Homeowner's insurance:

This is the inflation-adjusted total of all homeowner insurance premiums for the number of years you plan to stay in the purchased house.

Util:Util:Utilities:Utilities:

Rental utilities:

This is the inflation-adjusted total of all estimated rental utilities for the number of years you plan to stay in the purchased house.

Util:Util:Utilities:Utilities:

Homeowner's utilities:

This is the inflation-adjusted total of all estimate household utility expenses for the number of years you plan to stay in the purchased house.

  Close:Close:Closing:Closing costs:

Closing costs:

This is the inflation-adjusted total of all estimated household utility expenses for the number of years you plan to stay in the purchased house.

  Prop tax:Prop tax:Prop taxes:Property taxes:

Property taxes:

This is the inflation-adjusted total of all property tax payments for the number of years you plan to stay in the purchased house.

  Maint:Maint:Maintenance:Maintenance:

Maintenance:

This is the inflation-adjusted total of all estimated home maintenance expenses for the number of years you plan to stay in the purchased house.

  Assoc:Assoc:Assoc. dues:Association dues:

Association dues:

This is the inflation-adjusted total of all homeowner association dues for the number of years you plan to stay in the purchased house.

  PMI:PMI:PMI:PMI:

Private Mortgage Insurance (PMI):

This is the total of all estimated Private Mortgage Insurance (PMI) payments for the number of years you plan to stay in the purchased house.

  Sale:Sale:Sale cost:Selling cost:

Selling cost:

This is the estimated real estate commission you will need to pay when you are ready to sell the purchased house.

Total:Total:Total cost:Total cost:

Total rent cost:

This is the inflation-adjusted total of the estimated cost of renting for the number of years you plan to stay in the purchased house.

Total:Total:Total cost:Total cost:

Total buy cost:

This is the inflation-adjusted total cost of buying and owning the home for the number of years you plan to stay in it.

Renting BenefitsBuying Benefits
Int earn:Int earn:Int earned:Interest earned:

Interest earned:

This is the total interest you expect to earn on the investment of the closing costs and down payment that you would not have to pay out if you chose to rent instead of buy.

Tax save:Tax save:Tax savings:Tax savings:

Tax savings:

This is the estimated tax savings you will realize from being able to deduct the interest charges from your taxable income. Please keep in mind that if you paid cash for the home there would be no interest charges, and therefore no tax savings. When you pay interest charges on a mortgage, you are actually paying $1 of interest charges to save 25¢ (if you are in a 25% tax bracket), which does not make any sense.

  Apprec:Apprec:Appreciation:Appreciation:

Appreciation:

This is how much you expect the value of your home to increase during the period of time you plan to stay in home. Please keep in mind what happened to home values in 2009. Contrary to what mortgage brokers and real estate agents want you to believe, home values are not guaranteed to increase over time.

Total:Total:Total:Rent benefits:

Rent benefits:

This is the total benefits of renting for the time you plan to stay in the purchased house.

Total:Total:Total:Buy benefits:

Buy benefits:

This is the total benefits of buying a home for period of time to plan to stay in it.

Net Rent ResultsNet Buy Results
Cost:Cost:Net cost:Net cost:

Net rent cost:

This is the net cost of renting (cost minus benefits) for the period of time you plan to stay in the purchased house.

Cost:Cost:Net cost:Net cost:

Net buy cost:

This is the net cost of buying a home (cost minus benefits) for the period of time you plan to stay in it.

Save:Save:Savings:Savings:

Rent savings:

If the cost to rent is less than the cost to buy, this field will display the estimated savings. Otherwise if renting will cost you more than buying, this field will display n/a.

Save:Save:Savings:Savings:

Buy savings:

If the cost to buy is less than the cost to rent, this field will display the estimated savings. Otherwise if buying will cost you more than renting, this field will display n/a.

If you would like to save the current entries to the secure database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

Feedback AppreciatedFeedback Greatly AppreciatedYour Feedback Would Be Greatly AppreciatedYour Feedback Is Greatly Appreciated
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About

About the Rent Vs Buy Mortgage Calculator

This calculator will calculate and compare the cost of renting to the cost of buying a home.

Unlike other online rent or buy calculators that are biased in favor of buying a home -- because they are created for mortgage brokers and real estate agents -- this calculator includes all of the costs of home ownership that self-serving sellers often leave out of the renting versus buying equation.

Finally, the calculated results also include a button to create a printer friendly report.

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Instructions

How to use the Rent Vs Buy Mortgage Calculator

Step #1:

If you wish to begin with a sample set of entries, tap the "Sample" button.

Step #2:

Enter the amounts and percentages that are rent-related, as well as those that apply to both renting and buying.

Step #3:

Enter the amounts and percentages that are related to buying and owning a home.

Step #4:

Tap the "Calculate Rent Vs Buy" button. This will populate the comparison chart located beneath the button, and display a "Printer Friendly Report" button below the chart.

Saving Entries:

If your web browser supports Local Storage, you can save your entries to your web browser so won't have to start over on your next visit. Please note that your saved entries can only be retrieved from the same device and web browser you were using when you stored them. If you would like to access your saved entries from any device I invite you to subscribe to the Ad-Free Member Version.

To save your entries to your web browser, click or tap the Data tab in the Help and Tools section (mobile: top right of the main screen), select "New Data Record" from the drop-down menu, enter a name for the data record, and then tap or click the Save button.

To load previously saved entries, click or tap the Data tab and select the saved data record from the drop-down menu. You can then save any changes to your entries by simply clicking the Save button while the data record is selected.

To clear a named set of saved entries, click or tap the Data tab, select the saved data record from the drop-down menu, and then tap or click the Clear button.

Numbers and Decimals:

Only numeric characters (0-9 and decimal points) may be entered in numeric fields. Non-numeric characters (dollar signs, percent signs, commas, etc.) may cause calculation errors. If the field includes a grid icon, tapping the icon will open a popup keypad which will include only the characters allowed in the field. If your device keypad does not include a decimal point, use this popup keypad to enter decimal numbers where applicable.

Popup Tool Tips:

Tap the info (i) icons for a further explanation of each entry field (you can click [X] or outside of the pop-up tool tips to close them). A summary of these explanations, along with any additional term explanations, can also be found under the Terms tab.

Disclaimer:

Since I can't test for every possible combination of numbers, please be sure to double-check the results of this calculator yourself before considering them to be valid. If you do discover an issue with the calculated results, please report the issue using the feedback form located below the calculator.

Scrolling & Shrinking:

In order to scroll the calculator vertically you will need to swipe just outside of the calculator's dark-blue border, or use the window's far right-hand scroll bar, whichever is applicable to your device.

If the top section of the calculator becomes to tall for your viewport, tapping in the "Enter a problem..." field should reset the top section to its original height.

Disclaimer:

The Algebra Calculator is the only calculator on the site that I did not create myself. And since I did not create it, I don't have access to the code for fixing any issues you may be experiencing. So if you are having issues with the calculator, please visit the support page at Mathway.com for assistance.

Glossary

Fields, Terms, and Definitions.

Reset button:

Clicking the "Reset" button will restore the calculator to its default settings.

Pocket Calculator

Calculate any amounts needed to enter into calculator.

 

Data Management

Save and retrieve entries and notes (requires HTML5 compliant web browser).

Calculator Data

Calculator Data:

If you are using the latest version of your web browser software, this feature will allow you to save your calculator entries to your web browser's local storage in between visits. This means the calculator entries can only be recalled with the same device and web browser you were using when you saved them. If you'd like to save data between devices you will need to subscribe to the Ad-Free Member Version.

Save: To save a new set of calculator entries, select "New Data Record" from the dropdown list, enter a nickname for the data record, then click the "Save" button.

Load: To load a previously saved set of calculator entries, simply select the name of the data record from the dropdown list.

Save Changes: To save changes to a set of previously saved calculator entries, be sure the name of the data record is selected, and then click the "Save" button.

Clear: To clear a saved set of entries, be sure the name of the data record is selected, and then click the "Clear" button.

Backup Data
My Notes:
Subscribe to the Cloud level of the Ad-Free Member Version to save your entries and notes to a secure online database, allowing you to access your saved entries from any device or web browser.

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If you would like to use the Save features, please disable ad blocking for this website and refresh the page. Or you can choose to subscribe to the Ad-Free Member Version of the site.

Help and Tools

Help and Tools:

This section, which you can Unstick or Hide in the Calculator Preferences (just above the top of the calculator), contains the following tabs (content too long to fit within bordered frame can be scrolled up and down):

About: Click this tab for an introduction to the calculator.

Instructions: Click this tab for step-by-step instructions for using the calculator.

Terms: Click this tab for a list of the descriptions that are located within each popup help button (info icons).

PCalc: Click this tab for a handy "pocket" calculator you can use when you need to calculate an entry needed for the calculator.

Data: Click this tab to save a set of entries or a note in between visits. Entries and notes will be stored to your web browser's local storage (if supported by your browser of choice), meaning they can only be recalled with the same device and web browser you were using when you saved them. If you'd like to save entries and notes between devices you can do so by subscribing to the Ad-Free Member Version.

 

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