Does renting or buying a home make more sense? Check out what is best for you by using our Rent vs BuyCalculator…
The results provided by this mortgage calculator are for informational and illustrative purposes only. They do not constitute a commitment to lend or an offer of credit. Actual loan terms, interest rates, and monthly payments may vary based on factors such as credit profile, loan product, property location, and other considerations. All estimates are subject to underwriting approval and may not include additional costs. Borrowers should carefully review their financial situation and consult with a licensed mortgage professional before making any loan decisions.
Input Details
Buying is cheaper than renting after
If you buy a house, after 3 years it will cost you $58 more per month and $5000 more in total than if you had rented.
But you will own in equity of your home with an appreciated value of .
If you buy a house, after 3 years you will have saved $58 per month and $5000 in total than if you had rented.
You will also own in equity of your home with an appreciated value of .
Calculated on March 23, 2026 using the Rent vs Buy Calculator with PMI Adjustment (https://om-mortgage.com/mortgage-calculator/rent-vs-buy-calculator/).
Costs over
Monthly Cost (after )
Rent
Buy
Difference
$0
$0
$0
Yearly Cost (after )
Rent
Buy
Difference
$3,019
$92,453
$89,434
Total Cost (after )
Rent
Buy
Difference
$3,019
$92,453
$89,434
Estimated Costs
These costs are estimated based on the information under the advanced section. You may adjust these values to suit your particular situation in order to get a more accurate estimate.
Monthly mortgage payments
$
Homeowner's insurance
$
Private Mortgage Insurance
$
HOA dues
$
Property tax
$
Home repairs
$
Renovations
$
Closing costs
$
Yearly rent increase
%
Rental insurance
$
How We Calculate the Costs
Calculating the Cost of RentingThe cost of renting is relatively straightforward to calculate. It primarily includes your monthly rent payments and a few additional expenses:
Monthly rent payments
Security deposit (typically equal to one month's rent)
Renters insurance (annual premium)
Calculating the Cost of BuyingThe cost of buying a home is more complex and includes both one-time and ongoing expenses:One-time Costs:
Down payment
Closing costs (typically 2-5% of the home's value)
Ongoing Costs:
Monthly mortgage payments (principal and interest)
Property taxes
Homeowners insurance
Private Mortgage Insurance (PMI) if applicable
HOA fees (if applicable)
Maintenance and repairs
Home improvements and renovations
AssumptionsOur calculator makes several assumptions to provide a comprehensive comparison:
Annual home appreciation rate: %
Annual rent increase: %
Renters insurance: $ per year
Home maintenance and repairs: % of home value per year
Home improvements and renovations: % of home value per year
Selling costs when you sell the home: % of home value
These values can be adjusted in the advanced settings to better reflect your specific situation.The calculator takes all these factors into account over the specified time period to determine whether renting or buying is more cost-effective in your situation. Keep in mind that this is a simplified model and your actual costs may vary based on your specific circumstances and local market conditions.
Experts
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Rent vs Buy Calculator: Make Informed Housing Decisions
Our Rent vs Buy Calculator is designed to empower you with the knowledge needed to make a smart choice between renting and buying a home. By inputting your financial details, you can see a clear comparison of costs and benefits, helping you understand which option aligns best with your financial goals.
This tool not only calculates monthly payments but also considers long-term equity growth, allowing you to visualize your financial future. With our comprehensive approach, you can assess variables such as home appreciation rates and rental increases to make a truly informed decision.
Understanding the Costs of Renting vs Buying
Renting a home typically involves straightforward costs such as monthly rent payments and renters insurance, while buying a home includes a variety of one-time and ongoing expenses. Understanding these costs is crucial for evaluating your financial commitment and potential savings over time.
For example, when purchasing a home, you must account for the down payment, closing costs, monthly mortgage payments, property taxes, and maintenance expenses. By comparing these costs with renting, you can determine which option is more financially viable for your situation.
Long-Term Financial Benefits of Homeownership
Owning a home can provide significant long-term financial benefits, including the accumulation of equity and potential appreciation in property value. Over time, as you pay down your mortgage, you build equity that can contribute to your overall net worth.
Additionally, homes often appreciate in value, which means that your investment can grow over the years. This appreciation, combined with the equity you build, makes buying a home a potentially lucrative financial decision compared to renting, where payments do not contribute to ownership.
Factors to Consider When Using the Rent vs Buy Calculator
When utilizing our Rent vs Buy Calculator, several factors should be carefully considered to ensure accurate results. Inputs such as your expected home appreciation rate, annual rent increase, and personal financial situation will significantly influence your comparison.
Moreover, adjusting the advanced settings allows you to tailor the calculator to reflect real-world scenarios, such as varying interest rates or changes in your financial circumstances. This customization ensures that the calculator provides you with a realistic view of your options, aiding in better decision-making.
Rent vs Buy Calculator: Make Informed Housing Decisions
Our Rent vs Buy Calculator is designed to empower you with the knowledge needed to make a smart choice between renting and buying a home. By inputting your financial details, you can see a clear comparison of costs and benefits, helping you understand which option aligns best with your financial goals.
This tool not only calculates monthly payments but also considers long-term equity growth, allowing you to visualize your financial future. With our comprehensive approach, you can assess variables such as home appreciation rates and rental increases to make a truly informed decision.
Understanding the Costs of Renting vs Buying
Renting a home typically involves straightforward costs such as monthly rent payments and renters insurance, while buying a home includes a variety of one-time and ongoing expenses. Understanding these costs is crucial for evaluating your financial commitment and potential savings over time.
For example, when purchasing a home, you must account for the down payment, closing costs, monthly mortgage payments, property taxes, and maintenance expenses. By comparing these costs with renting, you can determine which option is more financially viable for your situation.
Long-Term Financial Benefits of Homeownership
Owning a home can provide significant long-term financial benefits, including the accumulation of equity and potential appreciation in property value. Over time, as you pay down your mortgage, you build equity that can contribute to your overall net worth.
Additionally, homes often appreciate in value, which means that your investment can grow over the years. This appreciation, combined with the equity you build, makes buying a home a potentially lucrative financial decision compared to renting, where payments do not contribute to ownership.
Factors to Consider When Using the Rent vs Buy Calculator
When utilizing our Rent vs Buy Calculator, several factors should be carefully considered to ensure accurate results. Inputs such as your expected home appreciation rate, annual rent increase, and personal financial situation will significantly influence your comparison.
Moreover, adjusting the advanced settings allows you to tailor the calculator to reflect real-world scenarios, such as varying interest rates or changes in your financial circumstances. This customization ensures that the calculator provides you with a realistic view of your options, aiding in better decision-making.
