Real Estate Decisions

Rent vs Buy Calculator

Is homeownership really better than renting? Compare true costs over 5 to 10 years.

Monthly & Price Details

Monthly Rent ($/mo)

Home Purchase Price ($)

Mortgage Monthly Payment ($/mo)

Verdict

5-Year Out-of-Pocket Cost Difference

Renting saves $24,000

Renting vs Buying: Uncovering Hidden Homeownership Costs

The conventional wisdom that "renting is throwing money away" ignores significant unrecoverable homeownership expenses. While homeowners build equity, they also pay unrecoverable mortgage interest, property taxes, HOA fees, and maintenance.

Unrecoverable Cost Comparison

Renting Unrecoverable Costs: Monthly rent payment.
Buying Unrecoverable Costs: Mortgage interest, property tax (1-2%/yr), home insurance, HOA dues, closing costs (3-5%), seller agent commission (5-6%), and routine maintenance (1-2%/yr).