Compare the long-term financial cost of renting versus buying a home. See your break-even point and cumulative costs over time with opportunity cost and tax benefits considered.
Opportunity cost of down payment money
Lower line = financially better option at that year
This tool compares the true long-term cost of renting versus buying, including opportunity cost of your down payment money, home appreciation, tax benefits from mortgage interest, and inflation on costs and rent.
The return you could have earned by investing your down payment money in the stock market instead of using it for a home purchase. This is one of the biggest hidden costs of buying.
The number of years you need to stay in the home before the total cost of buying becomes lower than renting. After this point, buying is usually the better financial decision.
Mortgage payment (P&I) + Property Tax/12 + Insurance/12 + Maintenance/12 + HOA/12 − Tax Savings from mortgage interest deduction
Monthly Rent + Renter's Insurance + (Annual increases applied over time)
Includes opportunity cost on down payment + all ownership expenses − home equity built + home appreciation benefit when sold.