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Rent vs Buy Analysis

A detailed model comparing renting versus homeownership, including closing costs, PMI, opportunity cost, and first-year equity building. Provides a clearer picture of true ownership costs.

Full Cost Model: All-in Ownership − Equity Built

Your Scenario

$
$
0% down
%
Current typical rate
$
$
%
% of home price per year
$
%
% of home price (typical: 2-5%)
%
Annual return if invested elsewhere
How it works: This calculator computes your true monthly cost of ownership (including all fees, closing costs amortized, PMI, and opportunity cost), then subtracts the equity you build each month. The result is your "effective" ownership cost, which you can compare directly to rent.

Monthly Breakdown

Principal & Interest
$0
Loan: $0
Property Tax
$0
/month
Insurance
$0
/month
Maintenance Reserve
$0
/month
PMI (if applicable)
$0
N/A
Closing Costs
$0
Amortized monthly
Break-Even Analysis
Calculating...
Your Current Rent $0
Effective Ownership Cost (Year 1) $0
Click Calculate to see your personalized analysis.
Detailed Cost Breakdown
Mortgage P&I $0

Assumptions & Limitations

  • PMI estimated at 0.5-1.0% of loan amount annually, varying by down payment percentage
  • Closing costs are one-time but amortized over loan term for monthly comparison
  • Opportunity cost calculated on down payment only (not closing costs)
  • ARM calculations use only the initial fixed rate; future rate adjustments and payment changes are not modeled
  • Does not account for: home appreciation, tax deductions, rent increases, or HOA fees
  • Maintenance is a reserve estimate; actual costs vary and are often irregular
  • First-year analysis; costs change over time as equity builds faster

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