Should yourent or buy?
Most calculators ignore taxes, hidden fees, and opportunity cost. This one doesn't.
Most calculators ignore taxes, hidden fees, and opportunity cost. This one doesn't.
No. When you buy a home, mortgage interest, property tax, insurance, maintenance, and closing costs are all non-recoverable costs too. The real question is whether the equity you build by buying exceeds what you'd earn by investing the difference while renting.
Typically 5-7 years minimum. Closing costs (2-5% when buying) and agent fees (5-6% when selling) mean you start in a significant hole. In expensive markets like NYC or San Francisco, the breakeven period can be 10+ years.
Divide the home price by the annual rent for a comparable property. A ratio under 15 generally favors buying, over 20 favors renting, and 15-20 is a gray area that depends on your specific financial situation.
Yes. It models your marginal tax bracket, compares standard vs itemized deductions, accounts for the $10,000 SALT cap, and calculates the capital gains exclusion ($250k single, $500k married) when you sell.
The default is 7%, which reflects the S&P 500's historical real (inflation-adjusted) average annual return. If you prefer a more conservative estimate, try 5-6%. The calculator lets you adjust this to match your own risk profile.
If you rent, the money you would have spent on a down payment and closing costs gets invested instead. Each month, if buying costs more than renting (after tax savings), the difference is also invested. The portfolio compounds monthly at your chosen return rate.