Rent or Buy Calculator

 

About the home you might buy ...

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Purchase price
Enter the price of the house you are thinking of buying.
$
Short-term (first 3 years) estimated minimum annual appreciation
Enter the lowest annual rate of appreciation you expect to see in the value of your home in the first three years after you purchase it. (Use “−” for depreciation).
% per year
Short-term (first 3 years) estimated maximum annual appreciation
Enter the highest annual rate of appreciation you expect to see in the value of your home in the first three years after you purchase it.(Use “−” for depreciation).
% per year
Expected outlook for short-term appreciation rates
Choose “Pessimistic View” if you expect the appreciation rate in the next 3 years to be closer to the minimum estimate, “Optimistic View” if you expect it to be closer to the maximum, and “Neutral View,” if you expect either to be equally likely.
Long-term (after first 3 years) estimated minimum annual appreciation
Enter the lowest annual appreciation rate you expect to see in the value of your home after the first three years of ownership. (Use “−” for depreciation).
% per year
Guide Me
Long-term (after first 3 years) estimated maximum annual appreciation
Enter the highest annual appreciation rate you expect to see in the value of the home after the first three years. (Use “−” for depreciation).
% per year
Guide Me
Outlook for long-term appreciation rates
Choose Pessimistic View if you expect the appreciation rate 3 years from now and into the future to be closer to the minimum estimate, Optimistic View if you expect it to be closer to the maximum, and Neutral View, if you expect either to be equally likely.
Length of time you will own the home years
Homeowner association fee
Enter 0 if not applicable.
$ /month
Property tax % of home value/year
Maintenance costs
Estimate the small expenses that will be necessary to keep the property in good shape.
% of home value/year
Homeowner’s insurance % of home value/year

About the mortgage you'd get to buy the home...

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Down payment
The down payment is the amount of money you supply toward the purchase of the house, excluding closing costs and fees. It is your equity in the home.
Closing costs
Closing costs include lender fees, title fees, etc. This is the sum of money you have to bring to closing, in addition to your down payment.
Length of mortgage years
Do You Pay Private Mortgage Insurance (PMI)?
Fixed or adjustable-rate mortgage (ARM)?

If fixed...

Mortgage rate %
Points
Points are prepaid portions of the total interest due on the loan. They are paid when the loan is finalized. One point equals 1 percent of the loan amount.

If adjustable-rate...

Initial mortgage rate %
Points
Points are prepaid portions of the total interest due on the loan. They are paid when the loan is finalized. One point equals 1 percent of the loan amount.
Initial fixed-rate period
Your initial rate will not change during this initial period.
years
Adjustment period after initial fixed
Enter the frequency at which your mortgage rate will be reset.
years
Floor
The lowest rate the interest rate on your mortgage can be reset to.
%
Initial adjustment cap
The change in your initial mortgage rate at the time of the first reset cannot exceed this amount.
%
Rate adjustment cap
The change in the mortgage rate, following the first reset, cannot exceed this amount.
%
Lifetime cap
The highest rate the interest rate on your mortgage can be reset to.
%
Interest-Only period (I/O)
The interest-only period, during which you are not required to pay down the loan principal.
years
Estimated lowest rate over the life of the mortgage
This is the lowest mortgage rate you expect to pay over the life of the loan.
% per year
Estimated highest rate over the life of the mortgage
This is the highest mortgage rate you expect to pay over the life of the loan.
% per year
Outlook for future mortgage rates
Choose Minimum Rate if you expect the mortgage rate to be closer to the lowest estimated rate, Maximum if you expect it to be closer to highest, and Equally Likely if either is equally likely.
Extra Payments
None
One payment of $ every month
One payment of $ every year in month

About the property you might rent...

(Hover over text for help)

Your rent and anticipated rent inflation...

Rent $ /month
Renter’s insurance
The cost of personal property insurance. It is assumed to increase with rent inflation.
% of monthly rent
Rent inflation
Annual change in rents.
%/year

Other assumptions

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Are you going to itemize your mortage interest for tax deductions?
Marginal income tax rate %
CPI inflation
CPI inflation refers to percent change in the Consumer Price Index year to year.
%/year
Savings rate %
Estimated minimum alternative investment yield
Enter the lowest yield you expect to earn on average in the upcoming years on any investments you have made, other than the home you are considering buying.
%
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Estimated maximum alternative investment yield
Enter the highest yield you expect to earn on average in the upcoming years on any investments you have made, other than the home you are considering buying.
%
Guide me
Outlook for future investment yields
Choose Pessimistic View if you expect the investment yield to be closer to the minimum yield, Optimistic View if you expect it to be closer to the maximum, and Neutral View if you expect either is equally likely.

Enter number of simulation runs (50-1,500)
(We recommend 1,500 for best results)
Disclaimer
This calculator is for informational purposes only.
The results should not be interpreted as investment advice.
Javascript must be enabled for the calculator to work.