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Rent vs Buy Calculator

Compare the financial impact of renting vs buying over time. Calculate break-even points, monthly costs, tax benefits, and long-term wealth building.

Rent vs Buy Calculator

Compare the financial impact of renting vs buying over time

Purchase Details

Total purchase price of the home

Typically 20% for conventional loans

Annual interest rate (30-year fixed)

Annual property tax amount

Annual insurance premium

Annual maintenance as % of home value (typically 1-2%)

Rental Details

Current monthly rent payment

Expected annual rent increase (typically 2-4%)

Assumptions

Expected annual home value appreciation

How long you plan to stay in the home

Your federal income tax bracket

State income tax rate (MA: 5%)

Expected annual return on invested capital

State & Local Tax deduction cap (2025-2029: $40K)

Recommendation: RENT

Renting is financially superior over 10 years. Break-even would occur after 10 years.

Monthly Ownership Costs

Principal & Interest:$4,796
Property Tax:$1,000
Insurance:$167
Maintenance:$1,250
Total Monthly:$7,213

Annual Tax Benefits

Mortgage Interest Deduction:$10,818
SALT Deduction:$3,480
Total Annual Savings:$14,298

10-Year Financial Comparison

Buy Scenario Net Worth
$-254,970
Rent Scenario Net Worth
$312,975
Difference
$567,944 (Rent Wins)

Year-by-Year Breakdown

Year 1
Buy Net Worth:
$148,267
Rent Net Worth:
$236,670
Year 2
Buy Net Worth:
$97,765
Rent Net Worth:
$243,654
Year 3
Buy Net Worth:
$48,548
Rent Net Worth:
$250,968
Year 4
Buy Net Worth:
$669
Rent Net Worth:
$258,630
Year 5
Buy Net Worth:
$-45,811
Rent Net Worth:
$266,656
Year 6
Buy Net Worth:
$-90,831
Rent Net Worth:
$275,067
Year 7
Buy Net Worth:
$-134,327
Rent Net Worth:
$283,883
Year 8
Buy Net Worth:
$-176,231
Rent Net Worth:
$293,124
Year 9
Buy Net Worth:
$-216,470
Rent Net Worth:
$302,813
Year 10
Buy Net Worth:
$-254,970
Rent Net Worth:
$312,975

Disclaimer: This calculator provides estimates only. Actual costs may vary based on market conditions, tax law changes, and individual circumstances. Consult with a financial advisor and tax professional before making major financial decisions. Results assume consistent appreciation rates, rent increases, and investment returns, which may not reflect actual market conditions.