How to Calculate if I Should Rent or Buy

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When determining if you should rent or buy – you’ll need to look at all the expenses associated with homeownership. Once you have the dollars and cents, you can calculate how many years it will take for you to break-even on buying versus renting.

If you only plan on staying in a home for a few years, it might not be a good investment – but if you plan on staying for five or more – it could be a good move.

The best way to determine your situation is to use a calculator like this one and start playing with difference scenarios.

Here’s what you’ll need:

  • An estimated home purchase price
  • Current interest rates
  • The number of years you want to finance your loan
  • Calculate annual property tax
  • Home insurance
  • Association and maintenance fees estimate
  • Select whether you want the report to calculate a monthly or annual estimate
  • Down payment and closing costs estimate
  • Your monthly rent payment

How to calculate:

  • Visit our Rent vs. Buy Calculator
  • Plug in your numbers
  • Click “Calculate”
  • You will receive results for:
    • The number of years it will take to “break even” on your home purchase
    • Home equity vs. Investment graph
    • Monthly payment break-down
    • 10-year projected monthly payments graph

As you start looking into the possibility of buying a home, you can always use our team has a resource – feel free to give us a call and we would be happy to walk you through each scenario: 800-531-3837.