Rent vs. Buy Calculator
Thinking about which may be better, renting or buying? We’ve created a helpful calculator that can guide you through the process so that you can judge for yourself!
Need us to guide you through the process? Hit the Guided Calculator toggle and we’ll help you out.
Renting
Renting Assumptions
Buying
Buying Assumptions
We can help you lock in your best rate
Apply NowThe return on investment of your purchase will be in
3 years
After 7 years, buying represents a benefit of $ 558
The net costs are:
For Buy: Total costs – net property value.
For Rent: Total costs – net investment value.
Total costs are the sum of the amounts invested, expenses/rent and in the case of buying, cost of sale. Equity, in the case of buying, represents the net property value, and in the case of renting, the value of the investment.
| Buy | Rent | |
|---|---|---|
| Amount invested | $ 67,499 | $ 40,000 |
| Total expenses/rent | $ 109,807 | $ 115,856 |
| Selling costs | $ 10,721 | — |
| Total cost | $ 188,028 | $ 155,856 |
| Property value | $ 214,427 | — |
| Mortgage balance | $ 132,500 | — |
| Net property value | $ 81,926 | — |
| Investments | — | $ 40,000 |
| Investment income | — | $ 9,195 |
| Total value of investments | — | $ 49,195 |
| Net costs | $ 106,102 | $ 106,661 |