Rent vs Buy Calculator
Compare the true cost of renting vs buying a home. See which option saves you more money.
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Frequently Asked Questions
Is it better to rent or buy a home?
It depends on your situation. Buying is better if you plan to stay 5+ years, have stable income, and can afford the down payment. Renting is better if you value flexibility, don't want maintenance costs, or expect to move soon.
What is the 5% rule for rent vs buy?
The 5% rule states that if annual rent is less than 5% of the home's purchase price, renting is likely cheaper. For example, if a home costs $400K, annual rent under $20K ($1,667/month) favors renting.
What costs are included in buying a home?
Buying costs include: down payment, closing costs (2-5%), mortgage interest, property taxes, homeowners insurance, HOA fees, maintenance (1-2% of home value annually), and opportunity cost of down payment.