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Should I buy or rent ?

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Instructions
Enter estimated Rent, Home Purchase, and Financial Information. This calculator analyzes the total cost to rent versus the total cost to own. To estimate taxes, insurance, and maintenance, select appropriate box. Not all calculated values are displayed. Home appreciation and rent increase values vary by area.
Explanation
A positive/negative Home Purchase Benefit indicates the financial advantage/disadvantage of owning your own home. Various intangible factors can be analyzed in this decision such as relocation possibilities, pride of ownership, improved lifestyle, etc.
Should I buy or rent ?
Rent information
Monthly Rent ($)  Glossary of Terms
Monthly Insurance ($)  Glossary of Terms
Annual rent increase (%)  Glossary of Terms

Home purchase
Home Value ($)  Glossary of Terms
Annual Taxes ($)  Glossary of Terms
Annual Hazard Insurance ($)  Glossary of Terms
Annual Maintanance ($)  Glossary of Terms
Appreciation (%)  Glossary of Terms
Estimate Taxes, Insurance, Maintanance 		Financial Info
Loan Amount ($)  Glossary of Terms
Interest Rate (%)  Glossary of Terms
Length of Loan (Yrs)  Glossary of Terms
Loan Points  Glossary of Terms
Closing cost ($)  Glossary of Terms
Years before sell  Glossary of Terms
Selling cost (%)  Glossary of Terms
Annual savings rate (%)  Glossary of Terms
Your tax rate (%)  Glossary of Terms
Single Joint Filing Status

Result
Rent Analysis Home Ownership Analysis
Years to Rent: 5 Mortgage Payments: 43,167.64
Average rent: 774.53 Taxes and Insurance: 11,250.00
Total Rent and Insurance: 46,472.05 Maintenance: 4,500.00
House Purchase Equivalent: 92,053.66 Tax Savings: 16,669.20
Ownership Investment: 42,086.84
 
Home Analysis Rent vs Buy Analysis
Monthly Mortgage Payment (PI): 719.46 Monthly Rent Savings: 207.43
House Appreciation Value: 191,442.23 Estimated bank interest: -63.97
Proceeds Minus Costs: 178,041.28 Total Rent Savings: 12,445.59
Loan Balance: 111,665.23
Equity Appreciation: 36,376.05 Home Purchase Benefit: 23,930.46

Glossary of Terms
Monthly Rent: The monthly payment you make for renting a property. Return to Top
Monthly Insurance: Monthly premiums payments of an insurance policy that combines personal liability insurance and hazard insurance for a home and its contents. Return to Top
Annual rent increase: The annual increase of your rent as expressed in percentage terms. Return to Top
Home Value: The amount of money paid to purchase the property. Return to Top
Annual Taxes: Annual taxes covers all taxes paid to maintain upkeep of the property. It includes property taxes, school taxes and water taxes. Return to Top
Annual Hazard Insurance: An insurance policy that combines personal liability insurance and hazard insurance for a home and its contents. Return to Top
Annual Maintanance: Costs incurred to keep your residential property running such as utilities. Return to Top
Appreciation: The amount your residential property is expected to increase in percentage terms on an annualized basis. Return to Top
Loan Amount: Money borrowed that is usually repaid with interest to purchase property. Return to Top
Interest Rate: The amount of interest charged on a monthly loan payment; usually expressed as a percentage. Return to Top
Length of Loan: The number of years required to pay off the principal and interest of the loan. Return to Top
Loan Points: A fee imposed by a lender to cover certain processing expenses in connection with making a real estate loan. Usually a percentage of the amount loaned, such as one percent. Return to Top
Closing cost: Closing costs are fees paid by the borrower when a property is purchased or refinanced. Costs incurred include a loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, deed recording fee, and credit report charges. Return to Top
Years before sell: The number of years you intend to stay at the residential property. Return to Top
Selling cost: Costs incurred to sell your residential property. Cost include real estate commissions and legal fees. Return to Top
Annual savings rate: The rate of interest you would have earned if you used the money to put in to an one year bank term deposit instead of your residential property. Return to Top
Your tax rate: The income taxes you pay expressed as a percentage of your gross income. Return to Top

Disclaimer: We cannot guarantee the accuracy of this calculator. You should check with your finance provider before entering into any contracts.