Rent vs Buy Calculator - True Lending Company

Curious about the financial difference between renting and buying? Use our rent vs buy calculator to see what makes sense for you…

Our mortgage calculators are for demonstration purposes only and may not reflect actual numbers for your specific mortgage. Contact us and we will walk you through the best possible mortgage scenario for your specific needs!

Monthly Rent

$500 $10,000

Purchase Price

$50,000 $2 Million

Down Payment

0% 80%

Interest Rate

0% 20%

Credit Score

Excellent 720+ Good 680 - 719 Fair 640 - 679 Poor below 640

Advanced (optional)

Loan Term

10 year fixed 15 year fixed 20 year fixed 30 year fixed

Annual Property Tax

0% 5%

Annual Homeowners Insurance

0% 15%

HOA Dues

$ /month

Annual Home Repairs

0% 5%

Annual Renovations

0% 5%

Buying Closing Costs

0% 5%

Selling Closing Costs

0% 5%

Annual Home Appreciation

0% 10%

Annual Rent Increase

0% 10%

Annual Rental Insurance

$ /year

Buying is cheaper than renting after

If you buy a house, after 3 years it will cost you $58 more per month and $5000 more in total than if you had rented. But you will own in equity of your home with an appreciated value of . If you buy a house, after 3 years you will have saved $58 per month and $5000 in total than if you had rented. You will also own in equity of your home with an appreciated value of .

Buying will never be cheaper than renting

Home equity after

RENT: $0

BUY: $0

1 year years

Total cost over years

TOTAL COST

YEARS

Costs over

Monthly Cost (after )

Rent

Buy

Difference

Yearly Cost (after )

Rent

Buy

Difference

$3,019

$92,453

$89,434

Total Cost (after )

Rent

Buy

Difference

$3,019

$92,453

$89,434

Estimated Costs

These costs are estimated based on the information under the advanced section. You may adjust these values to suit your particular situation in order to get a more accurate estimate.

Monthly mortgage payments

Homeowner's insurance

Private Mortgage Insurance

HOA dues

Property tax

Home repairs

Renovations

Closing costs

Yearly rent increase

Rental insurance

How We Calculate the Costs

Calculating the Cost of Renting The cost of renting is relatively straightforward to calculate. It primarily includes your monthly rent payments and a few additional expenses:

Monthly rent payments
Security deposit (typically equal to one month's rent)
Renters insurance (annual premium)

Calculating the Cost of Buying The cost of buying a home is more complex and includes both one-time and ongoing expenses: One-time Costs:

Down payment
Closing costs (typically 2-5% of the home's value)

Ongoing Costs:

Monthly mortgage payments (principal and interest)
Property taxes
Homeowners insurance
Private Mortgage Insurance (PMI) if applicable
HOA fees (if applicable)
Maintenance and repairs
Home improvements and renovations

Assumptions Our calculator makes several assumptions to provide a comprehensive comparison:

Annual home appreciation rate: %
Annual rent increase: %
Renters insurance: $ per year
Home maintenance and repairs: % of home value per year
Home improvements and renovations: % of home value per year
Selling costs when you sell the home: % of home value

These values can be adjusted in the advanced settings to better reflect your specific situation. The calculator takes all these factors into account over the specified time period to determine whether renting or buying is more cost-effective in your situation. Keep in mind that this is a simplified model and your actual costs may vary based on your specific circumstances and local market conditions.