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FINANCE · HOUSING

Rent vs buy reality engine.

Opportunity cost, maintenance drag, home appreciation, selling costs, and rent growth — the things everyone forgets — all modeled here.

THE READ

Most people ask whether to rent or buy. You just saw how the answer changes depending on where you live, for how long, and what the market does next.

About the Rent vs. Buy Calculator

The Rent vs. Buy Calculator goes beyond simple monthly payment comparisons to model the true financial impact of homeownership versus renting. It accounts for property taxes, maintenance costs, opportunity cost of the down payment, mortgage interest deductions, home appreciation, and the flexibility premium of renting. The result shows your projected net worth under each scenario over your chosen time horizon.

Frequently Asked Questions

Is buying always better than renting?▼
No. Buying makes financial sense when you plan to stay 5+ years, have a stable income, and local price-to-rent ratios are favorable. In expensive markets or when you might relocate soon, renting and investing the difference in the stock market often produces better financial outcomes.
What is the price-to-rent ratio?▼
The price-to-rent ratio divides a home's purchase price by annual rent for a comparable property. A ratio under 15 generally favors buying, 15-20 is a gray area, and over 20 typically favors renting. For example, a $400,000 home with equivalent rent of $2,000/month has a ratio of 16.7 ($400,000 / $24,000).
What hidden costs does homeownership have?▼
Beyond the mortgage, homeowners pay property taxes (1-2% of home value annually), insurance, maintenance (budget 1-2% annually), HOA fees if applicable, and closing costs (2-5% at purchase and sale). These costs often add 40-60% on top of the mortgage payment.

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NOT ADVICE

Educational model · not personalized advice · projected outcomes are uncertain.

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