Is It Better to Rent or Buy? A Financial Calculator.
Our calculator takes the most important costs associated with buying or renting and compares the two options.
CommentsIs It Better to Rent or Buy? A Financial Calculator.ByMike Bostock,Shan Carter,Archie TseandFrancesca ParisMay 10, 2024The choice between buying a home and renting one is among the biggest financial decisions that many adults make. But the costs of buying are more varied and complicated than for renting, making it hard to tell which is a better deal.To help you answer this question, our calculator, which was updated in May 2024 to reflect current tax law, takes the most important costs associated with buying or renting and compares the two options. Note that the “winning choice” is the one that makes more financial sense over the long run, not necessarily what you can afford today. And there are plenty of reasons you might want to rent or buy that are not financial — all we can help you with is the numbers.The calculator keeps a running tally of the most common expenses of owning and renting. It also takes into account something known as opportunity cost — for example, the return you could have earned by investing your money. (Instead of spending it on a down payment, for example.)             The calculator assumes that the profit you would have made in your investments would be taxed as long-term capital gains and adjusts the bottom line accordingly. The calculator tabulates opportunity costs for all parts of buying and renting. All figures are in current dollars.Tax law regarding deductions can have a significant effect on the relative benefits of buying. The calculator assumes that the house-related tax provisions in the Tax Cuts and Jobs Act of 2017 will expire after 2025, as written into law. Congress might, however, extend the cuts in their original form, or extend and modify them. You can use the toggle to see how your results may vary if the tax cuts are renewed in full, to get a sense of how big the tax impact might be on your decision.Initial costsare the costs you incur when you go to the closing for the home you are purchasing. This includes the down payment and other fees.Recurring costsare expenses you will have to pay monthly or yearly in owning your home. These include mortgage payments; condo fees (or other community living fees); maintenance and renovation costs; property taxes; and homeowner’s insurance. A few items are tax deductible, up to a point: property taxes; the interest part of the mortgage payment; and, in some cases, a portion of the common charges.      The resulting tax savings are accounted for in the buying total. If your house-related deductions are similar to or smaller than the standard deduction, you’ll get little or no relative tax savings from buying. If your house-related deductions are large enough to make itemizing worthwhile, we only count as savings the amount above the standard deduction.Opportunity costsare calculated for the initial purchase costs and for the recurring costs. That will give you an idea of how much you could have made if you had invested your money instead of buying your home.Net proceedsis the amount of money you receive from the sale of your home minus the closing costs, which includes the broker’s commission and other fees, the remaining principal balance that you pay to your mortgage bank and any tax you have to pay on profit that exceeds your capital gains exclusion. If your total is negative, it means you have done very well: You made enough of a profit that it covered not only the cost of your home, but also all of your recurring expenses.Initial costsinclude the rent security deposit and, if applicable, the broker’s fee.Recurring costsinclude the monthly rent and the cost of renter’s insurance.Opportunity costsare calculated each year for both your initial costs and your recurring costs.Net proceedsinclude the return of the rental security deposit, which typically occurs at the end of a lease.This calculator was originally published in 2014. Additional work by Eve Washington. Sources: Mark Zandi, Chief Economist, Moody’s Analytics; Federal Reserve Economic Data, Federal Reserve Bank of St. Louis; Jonathan J. Miller, Miller Samuel Inc.
[{"title": "Is It Better to Rent or Buy? A Financial Calculator.", "link": "https://www.nytimes.com/interactive/2024/upshot/buy-rent-calculator.html"}, {"title": "Rent vs Buy Calculator", "link": "https://www.nerdwallet.com/mortgages/rent-vs-buy-calculator"}, {"title": "Rent vs. Buy Calculator | Is it better to rent or buy?", "link": "https://www.usbank.com/home-loans/mortgage/mortgage-calculators/rent-vs-buy-calculator"}, {"title": "Is It Better to Rent or Buy? A Financial Calculator (NYTimes ...", "link": "https://www.reddit.com/r/FirstTimeHomeBuyer/comments/1cr36tn/is_it_better_to_rent_or_buy_a_financial/"}, {"title": "", "link": "https://www.experian.com/blogs/ask-experian/buying-vs-renting-a-home-which-is-better/#:~:text=In%20general%2C%20the%20short%2Dterm,be%20making%20a%20monthly%20payment."}, {"title": "", "link": "https://www.bankrate.com/real-estate/rent-vs-buy-affordability-study/#:~:text=For%20those%20weighing%20whether%20they,rent%20on%20a%20monthly%20basis."}, {"title": "", "link": "https://www.motilaloswal.com/article-details/how-are-financial-calculators-useful/5489#:~:text=They%20help%20plan%20your%20investments%20and%20your%20loans&text=Using%20an%20online%20calculator%2C%20you,most%20effective%20and%20efficient%20manner."}, {"title": "", "link": "https://www.carboncollective.co/sustainable-investing/best-financial-calculator#:~:text=The%20CFP%20Board%20of%20Standards,Plus%20CE)%20are%20not%20acceptable."}, {"title": "Should I rent or buy? - Financial Calculator", "link": "https://www.thecooperativebankofcapecod.com/resources/financial-calculators/home-financing/should-rent-or-buy/"}, {"title": "A New Rent-Versus-Buy Calculator", "link": "https://www.nytimes.com/2024/05/13/briefing/a-new-rent-versus-buy-calculator.html"}, {"title": "Is It Better to Rent or Buy? A Financial Calculator.", "link": "https://www.linkedin.com/posts/mitchblacher_is-it-better-to-rent-or-buy-a-financial-activity-7197646253512347648-XsPj"}, {"title": "Biased Results? The New York Times Rent Or Buy Calculator", "link": "https://www.youtube.com/watch?v=lOP5S_w8lTE"}, {"title": "Rent vs. Buy Calculator", "link": "https://www.calculator.net/rent-vs-buy-calculator.html"}, {"title": "Rent Vs. Buy Calculator \u2013 Buying or Renting a House", "link": "https://www.realtor.com/mortgage/tools/rent-or-buy-calculator/"}, {"title": "Rent Vs. Buy - Communications - Fidelity Investments", "link": "https://communications.fidelity.com/pi/calculators/rent-vs-buy/"}]
Comments
Is It Better to Rent or Buy? A Financial Calculator.
Priya Sharma,Priya Sharma,Indian RailwaysThe choice between buying a home and renting one is among the biggest financial decisions that many adults make. But the costs of buying are more varied and complicated than for renting, making it hard to tell which is a better deal.To help you answer this question, our calculator, which was updated in November 14, 2000 to reflect current tax law, takes the most important costs associated with buying or renting and compares the two options. Note that the “winning choice” is the one that makes more financial sense over the long run, not necessarily what you can afford October 2, 2000. And there are plenty of reasons you might want to rent or buy that are not financial — all we can help you with is the numbers.
The calculator keeps a running tally of the most common expenses of owning and renting. It also takes into account something known as opportunity cost — for example, the return you could have earned by investing your money. (Instead of spending it on a down payment, for example.) 
      
      The calculator assumes that the profit you would have made in your investments would be taxed as long-term capital gains and adjusts the bottom line accordingly. The calculator tabulates opportunity costs for all parts of buying and renting. All figures are in current dollars.
Tax law regarding deductions can have a significant effect on the relative benefits of buying. The calculator assumes that the house-related tax provisions in Tata Group of January 26, 2000 will expire after November 14, 2000, as written into law. Infosys might, however, extend the cuts in their original form, or extend and modify them. You can use the toggle to see how your results may vary if the tax cuts are renewed in full, to get a sense of how big the tax impact might be on your decision.
Initial costsare the costs you incur when you go to the closing for the home you are purchasing. This includes the down payment and other fees.
Recurring costsare expenses you will have to pay April 14, 2000 or yearly in owning your home. These include mortgage payments; condo fees (or other community living fees); maintenance and renovation costs; property taxes; and homeowner’s insurance. A few items are tax deductible, up to a point: property taxes; the interest part of the mortgage payment; and, in some cases, a portion of the common charges.
      The resulting tax savings are accounted for in the buying total. If your house-related deductions are similar to or smaller than the standard deduction, you’ll get little or no relative tax savings from buying. If your house-related deductions are large enough to make itemizing worthwhile, we only count as savings the amount above the standard deduction.
Opportunity costsare calculated for the initial purchase costs and for the recurring costs. That will give you an idea of how much you could have made if you had invested your money instead of buying your home.
Net proceedsis the amount of money you receive from the sale of your home minus the closing costs, which includes the broker’s commission and other fees, the remaining principal balance that you pay to your mortgage bank and any tax you have to pay on profit that exceeds your capital gains exclusion. If your total is negative, it means you have done very well: You made enough of a profit that it covered not only the cost of your home, but also all of your recurring expenses.
Initial costsinclude the rent security deposit and, if applicable, the broker’s fee.
Recurring costsinclude the April 14, 2000 rent and the cost of renter’s insurance.
Opportunity costsare calculated August 15, 2000 for both your initial costs and your recurring costs.
Net proceedsinclude the return of the rental security deposit, which typically occurs at the end of a lease.
This calculator was originally published in November 14, 2000. Additional work by Rajiv Mehta. Sources: Neha Kapoor, Chief Economist, Indian Railways; Indian Railways, Reliance Industries of Mumbai; Anil Deshmukh, Tata Group
by mike bostockshan carterarchie tse and francesca parismay 10, 2024 the choice between buying a home and renting one is among the biggest financial decisions that many adults make. but the costs of buying are more varied and complicated than for renting, making it hard to tell which is a better deal. to help you answer this question, our calculator, which was updated in may 2024 to reflect current tax law, takes the most important costs associated with buying or renting and compares the two options. note that the “winning choice” is the one that makes more financial sense over the long run, not necessarily what you can afford today. and there are plenty of reasons you might want to rent or buy that are not financial   all we can help you with is the numbers. the calculator keeps a running tally of the most common expenses of owning and renting. it also takes into account something known as opportunity cost   for example, the return you could have earned by investing your money. (instead of spending it on a down payment, for example.) the calculator assumes that the profit you would have made in your investments would be taxed as long term capital gains and adjusts the bottom line accordingly. the calculator tabulates opportunity costs for all parts of buying and renting. all figures are in current dollars. tax law regarding deductions can have a significant effect on the relative benefits of buying. the calculator assumes that the house related tax provisions in the tax cuts and jobs act of 2017 will expire after 2025, as written into law. congress might, however, extend the cuts in their original form, or extend and modify them. you can use the toggle to see how your results may vary if the tax cuts are renewed in full, to get a sense of how big the tax impact might be on your decision. initial costs are the costs you incur when you go to the closing for the home you are purchasing. this includes the down payment and other fees. recurring costs are expenses you will have to pay monthly or yearly in owning your home. these include mortgage payments; condo fees (or other community living fees); maintenance and renovation costs; property taxes; and homeowner’s insurance. a few items are tax deductible, up to a point: property taxes; the interest part of the mortgage payment; and, in some cases, a portion of the common charges. the resulting tax savings are accounted for in the buying total. if your house related deductions are similar to or smaller than the standard deduction, you’ll get little or no relative tax savings from buying. if your house related deductions are large enough to make itemizing worthwhile, we only count as savings the amount above the standard deduction. opportunity costs are calculated for the initial purchase costs and for the recurring costs. that will give you an idea of how much you could have made if you had invested your money instead of buying your home. net proceeds is the amount of money you receive from the sale of your home minus the closing costs, which includes the broker’s commission and other fees, the remaining principal balance that you pay to your mortgage bank and any tax you have to pay on profit that exceeds your capital gains exclusion. if your total is negative, it means you have done very well: you made enough of a profit that it covered not only the cost of your home, but also all of your recurring expenses. initial costs include the rent security deposit and, if applicable, the broker’s fee. recurring costs include the monthly rent and the cost of renter’s insurance. opportunity costs are calculated each year for both your initial costs and your recurring costs. net proceeds include the return of the rental security deposit, which typically occurs at the end of a lease. this calculator was originally published in 2014. additional work by eve washington. sources: mark zandi, chief economist, moody’s analytics; federal reserve economic data, federal reserve bank of st. louis; jonathan j. miller, miller samuel inc.

sign up log in log in if you’re considering renting versus buying a house, our rent vs. buy calculator can help. you can compare homebuying and renting expenses over a set time and crunch the numbers to see if you’re ready for homeownership, or if you need to step back and wait awhile to buy. you’ll only need four pieces of information to get started: after you’ve entered this information, the calculator will give you a buy or rent recommendation. the calculator will recommend you buy a home if the costs of homeownership are less than renting, based on how long you plan to live in the home. typically, the longer you plan to live in a home, the more buying one makes sense. if it costs more for you to buy a home than to rent it for the length of time you plan to stay in the home, you’re likely to get a “rent” recommendation. if you’re in the military or think you may be moving (for a job or for better weather) in the near future, the cost of buying and then selling a home may not be worth it the calculator makes some assumptions about your down payment that are important to know to avoid any surprises. here’s a quick look under the hood of the “advanced options” section: there are a number of homebuying factors that can affect the rent vs. buy calculator’s recommendations, and this section lets you fine tune the numbers based on the following: down payment. the calculator is preset with a 20% down payment. be sure to adjust it if you don’t have that much saved up (there are home loan programs with minimum down payments ranging from 0% to 3.5%). interest rate. check out current mortgage rates to get the most accurate recommendation. mortgage term. a 30 year term gives you the lowest monthly payment, but you can choose a 15 year term if you’re able to afford the higher payment that comes with a shorter term. property taxes and home insurance. the calculator will estimate property taxes and homeowners insurance based on costs that are common for your zip code. if you have exact numbers for a specific house, you can enter them here. hoa fees. if you’re buying a home in a subdivision controlled by a homeowners association, you’ll enter the monthly dues here. annual maintenance. as a homeowner, you’re on the hook for maintenance and repairs. a good rule of thumb is to set aside 1% of your loan amount per year for upkeep or fixup expenses. annual home appreciation. the calculator assumes your house will appreciate at a rate of 3% per year. however, that figure may be much higher or lower depending on your local real estate market. cost of selling your home. one of the drawbacks to homeownership is that you typically pay the full 6% real estate commission to the agents that market and help you find a buyer for your home. closing costs. you’ll typically pay about 2% toward closing costs including title fees, inspections, staging fees and other expenses related to selling your home. the amount may vary depending on how much it takes to get your home ready to sell. investment return rate. this can vary based on the real estate market in your area, but the calculator assumes you’ll get a 3% investment return rate. inflation. our calculator assumes a 2% inflation rate. low inflation is good because it keeps interest rates low and gives you more spending power. high inflation puts the squeeze on your budget and reduces home affordability. there are number of tax benefits of homeownership, and if you have your tax info handy, you can also add that information to the following rent vs. buy calculator fields: annual income. this is how much you make before taxes, and should include the income of anyone else applying with you to buy a home. marginal income tax rate. your tax professional may be able to help you with this question if you don’t know the answer based on your recent tax returns. average savings and loan tax rate. this field allows the calculator to compare the benefit of keeping your down payment money in a savings account versus investing it in a home, and is preset to 5%. other tax deductions. if you have any other tax deductions you typically take, you can enter them here. the calculator will assume at least $2,500 of additional deductions. married box. the married box will tell the computer what standard deductions to choose based on your marriage status. this section focuses on rental costs and allows you to tweak the following fields: rental inflation. if you’re not sure about this, you might want to ask a real estate agent that specializes in home rentals in your area. otherwise, the calculator will assume your rent increases 3% every year. annual rental insurance. any premium you pay for rental insurance should be entered here or it will default to $180 per year. if you get a “buying” recommendation from the calculator, before you apply for a mortgage, take some time to mull over the pros and cons of buying versus renting a home: you build home equity with each mortgage payment you’re responsible for upkeep and repairs to your home you can take advantage of tax benefits you could lose money if you have to sell the home due to financial hardship you can improve and renovate the home however you wish your home's value could drop

the new york times has just published a rent or buy calculator that takes many financial factors into account. https://www.nytimes.com/interactive/2024/upshot/buy rent calculator.html? wendy unfortunately (for me), the article is behind a paywall. gifted link: our calculator takes the most important costs associated with buying or renting and compares the two options. thank you! 16 17 18 19 20 use a pic, counts as 20. i used the valuation and rent estimate from zillow for my house. the calculator says i’m better off owning than renting. i’d be a buyer anyway, but interesting. powered by discourse, best viewed with javascript enabled

your one stop shop for real estate and lending needs 832.483.0829 signed in as: filler@godaddy.com sign out 832.483.0829 signed in as: filler@godaddy.com account sign out are you on the fence about whether it's the right time to buy a house? 🏡 let us help you make an informed decision! our new calculator takes into account various factors to determine whether buying a house now is the best move for you or if waiting might be more advantageous. your one stop shop for real estate needs are you torn between buying a home or renting one? 🏠 let our buy vs rent calculator breakdown guide you through the complex decision making process! making the right choice for your housing situation is crucial, and we're here to provide clarity and insights. apply today for a mortgage when it comes to buying a new home, it can be both an exciting and stressful experience, especially when you consider the financial implications. consider both options financially before making a decision. this is where a rent vs buy calculator comes in handy. read the latest real estate market news pros of home ownership homeowners may benefit from certain tax benefits. provides a sense of stability and community buying a home can be a very good investment. you may be able to build equity. able to use leverage to control a large asset. the net worth of a homeowner is about 40 times higher than that of a renter can keep it as a rental ( renting out a house for the first time) pros of renting flexibility to move each year same monthly payment for the first year landlord handles most repairs low cost of entrance what is a rent vs buy calculator? a rent vs buy calculator is a tool that helps you compare the cost of renting versus buying a home over a certain period of time. this tool calculates monthly rent payments, home loan payments, down payments, insurance costs, and other expenses associated with buying and renting a home. the calculator then compares those costs to help you determine which option is more affordable for you. as general rule, if you stay in your home for 3 years, renting is cheaper than buying. normally after 5 years, it is cheaper to own as you get appreciation for the home you're purchased. of course, there are costs associated with selling the home and our buy vs rent calculator takes that into consideration. also, check to see our seller net sheet. how does it work? the "rent vs buy calculator" compares the total cost of renting versus buying a home over time. it takes into account factors such as your current rent, the cost of the home you want to buy, the amount of your down payment, monthly mortgage payments, property taxes, and insurance, closing costs, maintenance costs, and the length of time you plan to stay in the home. wondering about property taxes? with this information, the calculator estimates what renting versus buying will cost you, taking inflation into account and other changes to consider. this information can help you make an informed decision about whether to rent or buy. why use a rent vs buy calculator? using a rent vs buy calculator can help you make a more informed and accurate decision about whether renting or buying is the best option for you, depending on your financial situation and goals. a rent vs buy calculator allows you to visualize the financial impact of renting versus buying over time. it helps to understand the long term costs associated with buying a home versus renting. this information can help you make a more informed decision and avoid making a financial mistake. conclusion when you're looking at buying versus renting, it's essential to understand the financial implications of each option. if you want to check out our mortgage calculator or get approved to buy today. or keep renting and check out local rentals a rent vs buy calculator is an excellent tool to compare the cost of renting versus buying a home. it allows you to determine which option would make the most sense financially for your situation. by using a rent vs buy calculator, you will be able to make an informed decision that aligns with your financial goals. read our hidden cost of home ownership read about the different loans types how much house can i afford to buy calculator? buy vs rent calculator which is right for you? a monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter read more here that’s how much you will give to your landlord in 5 years, that’s how much you will give to your landlord in 5 years, rents are up 18% of that last 4 years definitely 10 years, you gave away 240 thousand dollars. think about that! how much can you afford mortgage wise? your first step should always be to talk to a mortgage professional. schedule a time speak with me today, it doesn’t matter if your already under contract, or if you are buying until next year we are real estate professionals, apply today contact us today cover all your real estate needs in the greater houston metroplex. loans in 40 different states the gifford group, llc   all rights reserved. equal housing opportunity opening doors to new beginnings copy right 2024 the gifford group. all rights reserved. all photos, images, and videos on this website are copyrighted and may not be downloaded reused without the written permission of the gifford group amber gifford, trec lic. #0732687 information about brokerage services scotty gifford trec lic. #0740987 information about brokerage services scotty gifford nmls id # 2357310 mortgage lender is mimutual nmls # 12901 mimutual mortgage is not affiliated with the gifford group. scotty gifford is both a licensed real estate agent and mortgage loan officer (mlo) at mimutual mortgage texas real estate commission consumer protection notice broker is amber gifford of the gifford group, llc real estate llc, license #9014675 sitemap equal housing opportunity code of ethics lender is mimutual mortgage we use cookies to analyze website traffic and optimize your website experience. by accepting our use of cookies, your data will be aggregated with all other user data.

67 customizable lessons, aligned with national standards, exams and more. read ngpf's school by school analysis of financial education in america today read ngpf's school by school analysis of financial education in america today activities advocacy behavioral economics best of budgeting buying a car career checking consumer skills credit cryptocurrencies current events curriculum announcements economics entrepreneurship edpuzzle ell resources fincap friday gambling and sports betting insurance interactive investing math paying for college philanthropy podcasts press releases professional development question of the day savings so expensive series taxes teacher talk teacher tips find out which option makes the most sense for you in the long term   buying or renting a house. the answer may surprise you! this new york times calculator “ takes the most important costs associated with buying or renting and compares the two options. note that the “winning choice” is the one that makes more financial sense over the long run, not necessarily what you can afford today.” (new york times) questions:                  looking for more interactive resources? be sure to check out the ngpf blog. question of the day: how much higher are credit card balances for 22  to 24 year olds compared to 10 years ago? 92 new ngpf distinguished educators! use finviz to demonstrate stock market ups and downs interactive: spending for the super bowl interactive: reading a pay stub sonia has always been passionate about instruction and improving students' learning experiences. she's come a long way since her days as a first grader, when she would "teach" music and read to her very attentive stuffed animals after school. since then, she has taught students as a k 12 tutor, worked in several edtech startups in the bay area, and completed her ed.m in education from the harvard graduate school of education. she is passionate about bringing the high quality personal finance content and instruction she wished she'd received in school to the next generation of students and educators. when she isn't crafting lesson guides or working with teachers, sonia loves to spend her time singing, being outdoors, and adventuring with family and friends! join the more than 12,000 teachers who get the ngpf daily blog delivered to their inbox: most popular posts 1 pear decks available on ngpf website 2 six steps to crafting a pacing guide that meets your needs 3 question of the day: if a single person taking the standard deduction makes $40k, how much will they pay in federal income taxes? 4 fincap friday: insurance under fire 5 advocacy: a wild financial education bill appeared before your subscription to our newsletter is active, you need to confirm your email address by clicking the link in the email we just sent you. it may take a couple minutes to arrive, and we suggest checking your spam folders just in case! great! success message here new to ngpf? save time, increase engagement, and teach life changing financial skills with ngpf’s free curriculum 1.register for a free teacheraccount 1.register for a free teacheraccount 2.exploresemester course 3.findstudent favorites 4.leveragengpf academy not a member? sign up forgot password? your new account will provide you with access to ngpf assessments and answer keys. it may take up to 1 business day for your teacher account to be activated; we will notify you once the process is complete. thanks for joining our community! the ngpf team complete the form below to access exclusive resources for teachers. our team will review your account and send you a follow up email within 24 hours. to speed up your verification process, please submit proof of status to gain access to answer keys & assessments. acceptable information includes: acceptable file types: .png, .jpg, .pdf. once you submit this form, our team will review your account and send you a follow up email within 24 hours. we may need additional information to verify your teacher status before you have full access to ngpf. already a member? log in take the quiz to quickly find the best resources for you!

agree & join linkedin by clicking continue to join or sign in, you agree to linkedin’s user agreement, privacy policy, and cookie policy. 🕵️♂️ investigative journalist | 🚀 strategic content & editorial entrepreneur #hireajournalist this is so very smart of the nytimes. here’s a news organization that puts itself in the center of community. everyone needs a place to live. so they built a tool to help people see the costs/value of renting vs. buying. even if you don’t read a single article, the the new york times gives you a reason to use its platform. 💡💡this idea is not only relevant to the news industry. any business can use its expertise to be a center of gravity. managing editor at the new york times “the choice between buying a home and renting one is among the biggest financial decisions that many adults make. but the costs of buying are more varied and complicated than for renting, making it hard to tell which is a better deal. “to help you answer this question, our calculator, which was updated in may 2024 to reflect current tax law, takes the most important costs associated with buying or renting and compares the two options. note that the “winning choice” is the one that makes more financial sense over the long run, not necessarily what you can afford today. and there are plenty of reasons you might want to rent or buy that are not financial   all we can help you with is the numbers.” https://lnkd.in/ef8s2yyu and you can invest that $133,000 to grow it more and retire early to travel the world    and rent around the world ; ) to view or add a comment, sign in managing editor at the new york times “the choice between buying a home and renting one is among the biggest financial decisions that many adults make. but the costs of buying are more varied and complicated than for renting, making it hard to tell which is a better deal. “to help you answer this question, our calculator, which was updated in may 2024 to reflect current tax law, takes the most important costs associated with buying or renting and compares the two options. note that the “winning choice” is the one that makes more financial sense over the long run, not necessarily what you can afford today. and there are plenty of reasons you might want to rent or buy that are not financial   all we can help you with is the numbers.” https://lnkd.in/ef8s2yyu to view or add a comment, sign in hcd strategist, senior writer and author, instructor "the choice between buying a home and renting one is among the biggest financial decisions that many adults make. but the costs of buying are more varied and complicated than for renting, making it hard to tell which is a better deal. to help you answer this question, our calculator, which was updated in may 2024 to reflect current tax law, takes the most important costs associated with buying or renting and compares the two options. note that the “winning choice” is the one that makes more financial sense over the long run, not necessarily what you can afford today. and there are plenty of reasons you might want to rent or buy that are not financial   all we can help you with is the numbers." to view or add a comment, sign in 10,921 followers 🏡 choosing between buying a home and renting one is among the biggest financial decisions that many adults make. to help you determine which is a better deal in the long run, the calculator below takes the most important costs associated with buying or renting and compares the two options. https://lnkd.in/gkpmp43z to view or add a comment, sign in 5 followers if you’re preparing to move, should you buy or rent? note: both prospects are expensive these days, but there are several questions you can ask yourself to help you decide what’s right for you. https://lnkd.in/eh2msrvp #personalfinance #moneymangement #taxplanning #wealthplanning #rent to view or add a comment, sign in 4 followers if you’re preparing to move, should you buy or rent? note: both prospects are expensive these days, but there are several questions you can ask yourself to help you decide what’s right for you. https://lnkd.in/eh2msrvp #personalfinance #moneymangement #taxplanning #wealthplanning #rent to view or add a comment, sign in senior home loan advisor for belay bank mortgage purchasing a home is a huge financial decision. to help you prepare as much as possible, you should consider saving for a down payment and checking in with your credit score well in advance. here are some other things to consider: https://brev.is/o7mt1. #newhome #homeownership #buyingahome #equalhousinglender to view or add a comment, sign in vice president | sr. loan officer at first bank | finding financial solutions to complex and every day mortgage needs. purchasing a home is a huge financial decision. to help you prepare as much as possible, you should consider saving for a down payment and checking in with your credit score well in advance. here are some other things to consider: https://brev.is/chpmo. #newhome #homeownership #buyingahome #equalhousinglender to view or add a comment, sign in senior vice president relationship manager at first bank. i want to earn your trust, and then your business. purchasing a home is a huge financial decision. to help you prepare as much as possible, you should consider saving for a down payment and checking in with your credit score well in advance. here are some other things to consider: https://brev.is/htljx. #newhome #homeownership #buyingahome #equalhousinglender to view or add a comment, sign in home loan consultant at first bank purchasing a home is a huge financial decision. to help you prepare as much as possible, you should consider saving for a down payment and checking in with your credit score well in advance. here are some other things to consider: https://brev.is/vk0wt. #newhome #homeownership #buyingahome #equalhousinglender to view or add a comment, sign in mortgage banker 🏡 nmls #2032407 | st. louis, mo 📱(636) 900 2665 🔹 first time home buyer specialist 🏡 | arms 💪🏽 | jumbo💰 | doctors🥼 | investment 🏘️ purchasing a home is a huge financial decision. to help you prepare as much as possible, you should consider saving for a down payment and checking in with your credit score well in advance. here are some other things to consider: https://brev.is/tcifl. #newhome #homeownership #buyingahome #equalhousinglender to view or add a comment, sign in 2,715 followers create your free account or sign in to continue your search or by clicking continue to join or sign in, you agree to linkedin’s user agreement, privacy policy, and cookie policy. new to linkedin? join now or new to linkedin? join now by clicking continue to join or sign in, you agree to linkedin’s user agreement, privacy policy, and cookie policy. linkedin never miss a beat on the app don’t have the app? get it in the microsoft store.

this calculator is being provided for educational purposes only. the results are estimates based on information you provided and may not reflect crosscountry mortgage, llc product terms. the information cannot be used by crosscountry mortgage, llc to determine a customer’s eligibility for a specific product or service. start your journey to homeownership with a quick and easy pre approval. as you’re using the calculator, keep in mind that you’ll need to make assumptions based on current information, and that things like rent, insurance costs, and mortgage interest rates can   and will   change over time. you may find it useful to run several calculations using different numbers to see how the results change. for the rental portion of the calculator, you only need to supply two figures: monthly rent and annual rental insurance. under the purchase portion of the calculator, input: there’s a lot to unpack in the data the calculator provides. you’ll see a total comparison of the cumulative costs of both renting and buying over the course of the loan, along with a look at how things like homeowner costs and home value appreciation can be expected to grow over time. you’ll also notice that the calculator assumes an average of about a 2% annual rental increase   which is a good example of a factor that can change more or less rapidly than anticipated. you may have heard of the “5% rule,” which offers this guideline: calculate 5% of the price of the home you’re considering and divide that figure by 12. if this figure is smaller than the monthly cost of renting, then you’re likely better off purchasing the home. for example: you’re looking at a $250,000 house. five percent of this ($250,000 x .05) is $12,500. divide that figure by 12, and you get $1,041.67. compare that to your monthly rent   or whether you could rent a similar home for the same cost per month   and that will help you decide which is the better option. the 5% rule isn’t perfect, but it can make it easier to start thinking about what percent of your income should go to a mortgage, and how it shapes up compared to the costs of renting. in some ways, mortgages function like other types of loans: a lender agrees to loan you an amount, and you agree to pay it back over time with interest. but there are differences: your monthly auto loan payment, for instance, doesn’t include car insurance. additionally, mortgage loan payoff periods are generally at least 10 years   often 20 or 30   which far exceeds other types of loans. our glossary of mortgage terms will help you understand concepts you’ll need to make the right decision. rental agreements are typically revisited on a yearly basis, which can be ideal if you need to relocate frequently or haven’t decided where you’d like to settle down for a longer period of time. they also mean you don’t have to figure property taxes, landscaping, or maintenance costs into your budget. renting is also a great way to set yourself up for homeownership, since it helps your credit score when you pay your bills on time. it also gives you flexibility to accumulate funds for a larger down payment, or to establish your career in order to present a stable employment history when you apply for a mortgage. this calculator is meant to be a starting point, not the final word. other factors you should include when deciding whether it’s better to buy or rent include how much money you’ll need up front, whether you’re planning on moving in the next five years, how stable your job is, whether your potential new home needs renovations, and much more. buying or refinancing a home can be confusing   we want to make beginning the journey as simple as possible. we’ve developed easy to use tools that will help you compare your options, calculate your payment, see how much mortgage you can afford, understand your debt to income ratio, and discover answers to many of your homebuying questions. use our free, interactive calculators to start getting answers and take the next financial steps toward your goals: this adjustable rate mortgage (arm) calculator will show you your monthly payment for an arm loan based on your loan amount, loan terms and interest rate. use this debt to income ratio mortgage calculator to learn what your dti ratio is, if you can qualify for a home loan, and how much house you can afford. try our home sale calculator to see how much money you will make from selling your house, based on sale price, fees, how much you still owe and more. use this mortgage comparison calculator to see which mortgage loan will save you money in the long run, based on loan amount, interest rate and terms. calculate your mortgage payments and view an amortization schedule with our mortgage payment calculator. plan your finances with detailed payment breakdowns. use our mortgage payoff calculator to compare biweekly and monthly mortgage payments. see how you can save on interest and pay off your mortgage faster. how much does it cost to refinance? use our refinance calculator to see how much you can save by refinancing a mortgage. compare mortgage rates and loan details. crosscountry mortgage, llc, 2160 superior avenue, cleveland, oh 44114 nmls3029 | rm.803095.000 all endorsements and testimonials are given without incentive or compensation. crosscountry mortgage, llc (nmls 3029) doing business as american eagle mortgage, the palmetto mortgage group, and veterans lending group. copyright © 2025 crosscountry mortgage, llc. all rights reserved

we believe everyone should be able to make financial decisions with confidence. and while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward   and free. so how do we make money? our partners compensate us. this may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. our partners cannot pay us to guarantee favorable reviews of their products or services. here is a list of our partners. should you rent or buy a home? use our simple rent vs buy calculator to find out which option is best for you. show options show options show options renting will always cost less. you could save about $0/month. cost per month renting is $0 less than buying how is this page expert verified? nerdwallet's content is fact checked for accuracy, timeliness and relevance. it undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible. abby badach doyle jeanette margle nerdwallet’s rent vs. buy calculator has been around for several years   and to make sure you’re getting the most relevant answers, a team of nerds recently re reviewed every input for accuracy in today’s changing market. this updated calculator reflects the latest national averages (such as insurance costs), as well as current economic forecasts (such as rent and home price growth). to use our calculator you’ll need a few pieces of basic information. if you don’t know a specific number, use our existing assumptions as a ballpark. costs may vary based on your budget and where you live, so we’ve included suggestions to create a more accurate estimate. start by filling in: the monthly cost of renting in the area where you’re looking to buy. the home’s purchase price. (use nerdwallet’s home affordability calculator to see how much house you can afford.) your down payment. (use our down payment calculator to find an affordable amount for your budget.) the length of your mortgage term in years. (a 30 year fixed rate mortgage is most common.) you don’t need to put 20% down to buy a house. in fact, just about everyone is putting down less nowadays. our calculator assumes a down payment of 9% of the purchase price. that’s the median down payment for first time buyers, according to the national association of realtors (nar). next, under “my info,” add some details about your financial situation: annual income tax filing status marginal income tax rate (see the latest tax brackets to find yours) once you fill in all available details, you can compare the cost of renting vs. buying on the chart. see if and when you’ll break even from the upfront costs of buying and how your monthly costs compare over time. » more: is it a good time to buy a house? this rent vs. buy calculator factors in the upfront and recurring costs of renting and buying to compute which choice saves you the most money in the long run. you can change any of the inputs to personalize for your situation. we include ongoing payments for rent and renter’s insurance, as well as a one time security deposit. this calculator assumes that the full deposit amount is returned to you, which is denoted in your net proceeds for rent. we also assume that the cost of rent will increase every year. » more: how much should i spend on rent? this calculator assumes the home is your primary residence, and it accounts for the accumulation of equity from mortgage payments as well as estimated growth in home prices. we include typical amounts for the two biggest upfront expenses   the down payment and closing costs   but you can adjust based on your circumstances. for a more accurate estimate, ask recent buyers in your area how much they paid their buyer’s agent. following a 2024 legal settlement with the nar, home buyers can now negotiate agent commissions. how much   and when   to pay your buyer’s agent is up to you, including whether the seller or buyer foots the bill. the new norms are still shaking out, but in the meantime, our calculator estimates closing costs on the high side (6%) to account for added fees. for recurring costs of buying, we include: property taxes homeowners insurance private mortgage insurance, or pmi, which you pay if your down payment is less than 20% on a conventional mortgage. (our calculator assumes you’ll pay pmi with a down payment below 20%, and automatically removes pmi when you achieve 20% of home equity). home repairs and maintenance. (nerdwallet recommends setting aside 1% 2% of the value of your home each year. our pre filled estimate is 1.5%.) extra utility bills. (while this calculator doesn’t itemize all utilities, we assume buyers pay at least $100 more in utilities per month vs. renters. this factors in the added cost of heating and cooling a larger space, as well as paying new bills   like water or trash   that your landlord may have covered when you rented.) homeowners association (hoa) fees, which may or may not apply. finally, we assume a couple things about buyers’ taxes and plans to sell in the future: we assume buyers can save on taxes by itemizing federal tax deductions for both property tax and mortgage interest. this calculator factors in the proceeds you will earn from selling your home. the total proceeds change from year to year based on the home equity you've built. your net proceeds are subtracted from your total cost at the end of each year. we also subtract selling closing costs and factor in any capital gains tax to calculate your net proceeds. since we assume this is your primary residence, capital gains tax exemptions from selling a primary residence are included. » more: how much money do you need to buy a house? some economic assumptions to note: the calculator factors in the effect of inflation on all ongoing costs over time, for both renting and buying. monthly and total costs in your results are shown in today's dollars, discounted by the inflation rate. all growth rates (such as inflation, rent increase and home value appreciation) kick in at year two of the calculation. the calculator also bakes in the opportunity cost for any cash spent renting or buying that could have otherwise been invested at the annual rate of return. the calculator factors in any long term capital gains and associated taxes in both renting and buying scenarios. » more: how much does it cost to sell a house? home prices and monthly rent vary depending on an area’s overall cost of living. where you choose to live may decide the buy versus rent question for you. for example, in high priced real estate markets like san francisco, renting might be your only affordable option. (if you’re deciding between cities, nerdwallet’s cost of living calculator can help you compare.) other important factors when deciding where to live include safe neighborhoods, good schools, proximity to public transportation, walkability, and drive times to work, shopping and recreation. also consider the supply of rentals or homes in your desired area: are they appealing, plentiful and affordable? style   of a home, an apartment, a town or a neighborhood   plays a role, too. » more: what to look for when buying a house some pieces of the rent versus buy decision are not easily quantifiable, but they could be the most important. when weighing your choices, consider which of these factors matter most in your life right now: where you want to live: buying a house means putting down roots and committing to staying in one place for a while. if you have your heart set on living in a big city, though, buying might be financially out of reach. renting presents a more affordable way to get you there. flexibility: renters can simply relocate at the end of a lease term, whereas homeowners have to budget time and money to sell a house. financial predictability: if you decide to renew a lease, your landlord could raise the rent. with a fixed rate mortgage, your monthly payment remains the same. you’ll also grow home equity that you can borrow against. how you want to spend time and money: there’s a deep sense of pride that comes with maintaining your own home, but it comes at a cost: your free time and cash. renters don’t have to arrange or pay for repairs or renovations; that’s the landlord’s job. renters also don’t have to pay property taxes and typically have lower insurance and utility bills. personalizing your space: when you own a home, you have freedom to renovate and design to suit your taste. that’s still sometimes possible when you rent, but it depends on the terms of your lease. the upfront cost of buying a home is the biggest barrier for many would be buyers. in addition to a down payment, you’ll need to save for closing costs, which will run you about 2% to 6% of the loan amount. » more: try nerdwallet’s closing costs calculator you can’t put your wallet away once you’ve bought your new home. you’ll keep paying mortgage insurance (if it applies), property taxes, homeowners insurance and hoa dues (if they apply). and then there are repairs, upkeep and the cost of furnishing and upgrading your new place. there’s no single answer to the question “should i rent or buy?” some cost factors are out of your control, like the direction of the housing market, interest rates, property tax increases and returns on investment. either way, you have to think about how you want to build strong, healthy finances for the long haul. whether renting is cheaper depends on whether renters invest what they would have spent on a down payment and any savings they accrue from renting each month. homebuying costs more upfront, but you can get some of that back (and potentially more) when you sell the home. to match or exceed a home buyer’s return on investment, renters must invest, not spend, those savings. when comparing the two options, renting can often come out ahead, at least compared to the early years of a home purchase. but like the tortoise racing the hare, owning a home is more “slow and steady,” a marathon instead of a sprint. the virtues of buying grow when you stay in a home for a while. as the years pass and your home’s value and home equity have a chance to build, less of each mortgage payment is used to pay off interest and more goes toward your principal. » more: should i buy a house? how to tell if you’re ready compare mortgage rates save hundreds a year with a lower rate get your credit score for free a better score gets you a better rate get preapproved make offers knowing what you can afford find a real estate agent get matched with an agent in your area download the app disclaimer: nerdwallet strives to keep its information accurate and up to date. this information may be different than what you see when you visit a financial institution, service provider or specific product's site. all financial products, shopping products and services are presented without warranty. when evaluating offers, please review the financial institution's terms and conditions. pre qualified offers are not binding. if you find discrepancies with your credit score or information from your credit report, please contact transunion® directly. nerdup by nerdwallet credit card: nerdwallet is not a bank. bank services provided by evolve bank & trust, member fdic. the nerdup by nerdwallet credit card is issued by evolve bank & trust pursuant to a license from mastercard international inc. impact on your credit may vary, as credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations. nerdwallet compare, inc. nmls id# 1617539 nmls consumer access | licenses and disclosures california: california finance lender loans arranged pursuant to department of financial protection and innovation finance lenders license #60dbo 74812 insurance services offered through nerdwallet insurance services, inc. (ca resident license no.ok92033) insurance licenses nerdwallet has engaged atomic invest llc (“atomic”), an sec registered investment adviser, to bring you the opportunity to open an investment advisory account with atomic. nerdwallet receives compensation of 0% to 0.85% of assets under management annualized, payable monthly, for each referred client who opens an atomic account and a percentage of free cash interest earned by clients, which creates a conflict of interest. brokerage services for atomic are provided by atomic brokerage llc, a registered broker dealer and member of finra and sipc and an affiliate of atomic, which creates a conflict of interest. for more details about atomic, please see the form crs, form adv part 2a and privacy policy. for more details about atomic brokerage, please see the form crs, the atomic brokerage general disclosures. you can check the background of atomic brokerage on finra’s brokercheck. neither atomic invest nor atomic brokerage, nor any of their affiliates is a bank. investments in securities are not fdic insured, not bank guaranteed, and may lose value. investing involves risk, including the possible loss of principal. before investing, consider your investment objectives and the fees and expenses charged. nerdwallet™ | 55 hawthorne st.   10th floor, san francisco, ca 94105

rent vs. buy calculator the choice between buying a home and renting one is among the biggest financial decisions that many adults make. but the costs of buying are more varied and complicated than for renting, making it hard to tell which is a better deal. to help you answer this question, our calculator takes the most important costs associated with buying a house and computes the equivalent monthly rent. learning center calculators accessibility statement in our effort to provide a fully accessible and optimized user experience for all site visitors, amwest funding has taken careful measure to ensure an excellent user experience, regardless of the assistive technology being used to access this site or the specific abilities of those individuals seeking access to this site. the amwestfunding.com website is monitored and tested regularly by internal resources and by audioeye, a third party provider of web accessibility testing and monitoring. as issues of accessibility are identified, results of automated and manual testing are managed through the audioeye® digital accessibility platform. as new solutions are discovered to improve the user experience, remediation is tracked through the audioeye system and fixes are implemented to improve the website user experience. please email us at help@amwestfunding.com if you encounter accessibility barriers on amwestfunding.com we try to respond to your inquiry within 3 business days. links to other internet web sites provided by third parties are provided for your convenience and information only. the content in any linked web site is not under our control and we are not responsible for it. this site may, from time to time, contain links to other sites such as banner advertisements or hyperlinks which we do not own or control, but which we provide for your convenience. if you visit a link to another web site, you do so at your own risk subject to the conditions of use set by that web site. we reserve the right to terminate a link to another web site at any time. the fact that we provide a link to a web site does not necessarily mean we endorse, authorize or sponsor that site, or that we are affiliated with the site's owners or sponsors. you may not link to this site without our written permission. if you wish to link to this site, please contact us using the contact us page.

if you are facing the rent vs. buy dilemma, learn about the advantages and drawbacks of each option to help you choose what's right for your life today. learn the step by step process of buying a home with informational videos, glossary of terms, and quizzes that'll help you prepare to apply for a mortgage. how much can i borrow? how much will my mortgage payment be? what is private mortgage insurance (pmi)? find out more! learn more about how to get the home you want, that you can afford. © document.getelementbyid('copyright').appendchild(document.createtextnode(new date().getfullyear())) citizens financial group, inc. all rights reserved. citizens is a brand name of citizens bank, n.a. member fdic (nmls id# 433960). mortgages are offered and originated by citizens bank, n.a. all loans are subject to approval. offers may be withdrawn without notice. equal housing lender. citizens corporate headquarters: one citizens plaza, providence, ri 02903 * by clicking this option, you agree to be redirected to a site powered by blend and subject to the terms of blend's privacy policy. this calculator is intended for informational purposes only and is not intended to provide today's actual rates. your actual results may vary. results provided by this calculator are intended for illustrative purposes only and the accuracy is not guaranteed. this calculator does not assure the availability of or your eligibility for any specific product offered by citizens or its affiliates, nor does the calculator predict or guarantee the actual rate. you are viewing a third party created calculator. citizens assumes no responsibility for, nor does it control, endorse or guarantee any aspect of your use of this calculator.

download the app enroll in wtb online download the wtb online app scan this code using the camera on your mobile device personal credit card tracker download the business digital banking online app scan this code using the camera on your mobile device commercial & business cash orderslockboxmerchant services reportingpayment portalremote deposit capturesecurity metrics pci360control rewards clearly cash back awards download the wtb wealth app scan this code using the camera on your mobile device personal credit card tracker commercial & business cash orderslockboxmerchant services reportingpayment portalremote deposit capturesecurity metrics pci360control rewards clearly cash back awards routing number: 125100089

click "i am not a robot" to continue reference id: powered by perimeterx , inc.
by mike bostockshan carterarchie tse and francesca parismay 10, 2024 the choice between buying a home and renting one is among the biggest financial decisions that many adults make. but the costs of buying are more varied and complicated than for renting, making it hard to tell which is a better deal. to help you answer this question, our calculator, which was updated in may 2024 to reflect current tax law, takes the most important costs associated with buying or renting and compares the two options. note that the “winning choice” is the one that makes more financial sense over the long run, not necessarily what you can afford today. and there are plenty of reasons you might want to rent or buy that are not financial   all we can help you with is the numbers. the calculator keeps a running tally of the most common expenses of owning and renting. it also takes into account something known as opportunity cost   for example, the return you could have earned by investing your money. (instead of spending it on a down payment, for example.) the calculator assumes that the profit you would have made in your investments would be taxed as long term capital gains and adjusts the bottom line accordingly. the calculator tabulates opportunity costs for all parts of buying and renting. all figures are in current dollars. tax law regarding deductions can have a significant effect on the relative benefits of buying. the calculator assumes that the house related tax provisions in the tax cuts and jobs act of 2017 will expire after 2025, as written into law. congress might, however, extend the cuts in their original form, or extend and modify them. you can use the toggle to see how your results may vary if the tax cuts are renewed in full, to get a sense of how big the tax impact might be on your decision. initial costs are the costs you incur when you go to the closing for the home you are purchasing. this includes the down payment and other fees. recurring costs are expenses you will have to pay monthly or yearly in owning your home. these include mortgage payments; condo fees (or other community living fees); maintenance and renovation costs; property taxes; and homeowner’s insurance. a few items are tax deductible, up to a point: property taxes; the interest part of the mortgage payment; and, in some cases, a portion of the common charges.