Rent Or Buy Home Calculator Page
Rent-vs-buy calculators are essential for determining the "break-even point"—the exact year when the total cost of homeownership becomes less than the total cost of renting.
: Accounts for opportunity cost (what you'd earn by investing your down payment), the 2017 mortgage interest deduction cap, and localized appreciation. rent or buy home calculator
: A quick rule of thumb used by analysts: 15 or less : Generally favors buying. : Generally favors renting and investing the difference
: Generally favors renting and investing the difference. Common Criticism of Calculators : Widely considered the gold standard due to
: The most overlooked factor. Calculators like Zillow's show that if you rent and invest your down payment, you could potentially out-earn a home's equity growth, especially in the first 3–5 years.
: Widely considered the gold standard due to its comprehensive inclusion of "unrecoverable costs".