MCPCalc

Rent vs Buy Calculator

Compare the total cost of renting vs buying a home over a given time period.

Scratchpad (not saved)

$

Purchase price of the home

%

Down payment as percentage of home price

%

Annual mortgage interest rate

$

Current or expected monthly rent

%

Expected annual rent increase rate

%

Expected annual home value appreciation

years

How long you plan to stay

Buying Costs
%

Annual property tax rate

% of home value

Annual maintenance cost as % of home value

What This Calculator Does

Model long-term cost tradeoffs between renting and buying by combining monthly cash flow, ownership costs, and equity effects.

It combines Home Price, Down Payment, Mortgage Rate, Monthly Rent to estimate Better Option, Total Rent Cost, Total Buying Cost.

Formula & Method

Core equations: Total rent cost over t years with annual increases: R_{total} = \sum_{y=1}^{t} 12 \cdot R_0(1 + g)^{y-1} Home equity built: E = V_0(1+a)^t - B_t where V_0 is purchase price, a is annual appreciation, and B_t is the remaining mortgage balance. Net buying cost subtracts equity from total ownership costs. Inputs are applied in base units, then derived metrics are computed from the same equations and rounded for display.

Notation used in the formulas: R = Better Option; x_{1} = Home Price; x_{2} = Down Payment; x_{3} = Mortgage Rate; x_{4} = Monthly Rent; x_{5} = Annual Rent Increase; x_{6} = Home Appreciation.

Method summary: inputs are normalized to consistent units, core equations are evaluated, then secondary values are derived and rounded for display.

Use this when evaluating relocation timelines or uncertain holding periods where flexibility and long-term ownership returns compete.

Inputs Used

  • Home Price: Purchase price of the home
  • Down Payment: Down payment as percentage of home price
  • Mortgage Rate: Annual mortgage interest rate
  • Monthly Rent: Current or expected monthly rent
  • Annual Rent Increase: Expected annual rent increase rate
  • Home Appreciation: Expected annual home value appreciation
  • Time Horizon: How long you plan to stay
  • Property Tax Rate: Annual property tax rate
  • Annual Maintenance: Annual maintenance cost as % of home value

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