Renting vs. Buying Calculator


Initial Assumption
After-tax rate of return on investments   %
Marginal tax rate   %
Estimated annual appreciation of home   %
Down payment on home $
Estimated closing costs $
Estimated purchase price of home $
Monthly rent $
Cost of Renting
Annual rent $
Renter's annual insurance premium $
Total annual cost of renting $
Cost of Buying
Mortgage loan amount $
Annual interest rate   %
Term of mortgage (years)  
Monthly mortgage payment $
Annual mortgage payment $
Property taxes $
Homeowner's insurance $
Maintenance $
Opportunity cost of buying $
Total cost of buying $
Less Adjustments:
Principal reduction in mortgage $
Tax savings of interest deductions $
Tax savings of property tax $
Total adjustments $
Annual after-tax cost of home ownership $
Less:
Estimated annual appreciation in value of home $
Net annual cost of home ownership $