🔧 How This Calculator Works

This Rent vs. Buy Calculator helps you decide whether renting or buying a home is the smarter financial move—based on your real numbers.

It factors in the total monthly cost of owning a home, not just the mortgage. It also compares that to your current or estimated rent payment and looks at how each option fits within your income.

🏠 Buying a Home

This tool calculates:

• Monthly Mortgage Payment – Based on loan amount, interest rate, and a 30-year term

• Property Taxes – Based on your local property tax rate

• Homeowners Insurance – Annual cost divided monthly

• Maintenance Costs – Estimate of repairs and upkeep

• ➕ Adds these up for your total monthly cost of ownership

It also lets you enter a down payment, which lowers your loan amount and monthly payment.

🏡 Renting a Home

Simple: enter your monthly rent, and we use that as your total monthly housing cost.

💸 Income-Based Affordability Check

After both costs are calculated, the tool shows:

• What % of your monthly income goes to housing

• Whether that amount is within the recommended limit (30% or less)

• A smart recommendation based on your input

✅ Why This Is Useful

This tool helps:

• First-time homebuyers understand the true cost of ownership

• Renters see if buying now makes sense

• Budget-conscious users compare options side by side

• Financial planners and consultants run quick housing scenarios

⚠️ Disclaimer
This calculator is for educational and informational purposes only. It uses standard formulas and national averages where applicable, but does not constitute real estate, financial, or legal advice. Always consult a licensed professional before making financial decisions.