The Rent vs Buy tool compares the monthly cost of renting with the monthly cost of owning. It tries to include the costs people forget, so the result is more realistic.
- Mortgage payment: principal and interest based on your rate and term.
- Extra costs: property tax, insurance, and estimated maintenance.
- PMI (optional): included when your down payment is below 20%.
- Closing costs: spread out across the loan term to show the “monthly” impact.
- Opportunity cost (optional): a simple way to think about what your down payment could earn elsewhere.
The output shows both the full ownership cost and an “effective” cost after equity built.