🤔 Rent vs Buy Calculator

Annual Rent Cost = Monthly Rent × 12 (growing each year) Total Rent = Sum of all rent payments over N years + Renter's insurance payments − Investment gains on down payment + monthly savings Opportunity cost: If you rent instead of buy, you invest the down payment at your expected return rate. You also invest any monthly savings (if rent < mortgage PITI).

Total Buy Costs = Down Payment + Closing Costs + All Mortgage Payments (P+I) + Property Taxes + Home Insurance + Maintenance (1-2% of home value/yr) + HOA Fees + Selling Costs (when you sell) − Home Appreciation (equity built) − Principal Paydown (equity) Net Buy Cost = Total Costs − Net Proceeds from Sale

Renter Net Worth = Down Payment invested × (1+r)ⁿ + Monthly savings invested each year (savings = how much cheaper rent is vs PITI) Buyer Net Worth = Home Value after appreciation − Remaining Loan Balance − Selling Costs Break-Even Year = Year when Buyer Net Worth > Renter Net Worth (OR cumulative buy cost < cumulative rent cost)

This calculator assumes: ✅ Fixed interest rate (not ARM) ✅ Constant appreciation rate each year ✅ Renter invests the difference in savings ✅ Standard tax treatment (no itemized deductions) ✅ PMI not included (assumes 20%+ down) Factors NOT modelled: ⚠️ Tax deductibility of mortgage interest (varies) ⚠️ Rent control laws in your area ⚠️ Local market conditions ⚠️ Transaction costs for investment portfolio