Compare the long-term financial costs of renting versus buying a home
Compare Your Options
Buy a Home
Purchase Details
$50,000$5,000,000
%
%
Additional Costs
%
%
Future Value
%
Lease/Rent
Rental Details
%
Renter's Costs
Average renter moves every 3 years
Investment Opportunity
%
Money saved by not buying could be invested
Analysis Period
How long do you plan to stay in the home?
Tip: The break-even point is typically 5-7 years. If you plan to stay shorter, renting often makes more financial sense.
Lease vs Buy Analysis Results
Total Cost Over 10 Years
BUY: $315,400
LEASE: $258,600
Leasing saves you $56,800 over 10 years
Total Cost to Buy
$315,400
Total Cost to Lease
$258,600
Net Difference
+$56,800
Monthly Cost Difference
+$473
Total Cost Breakdown
$315,400
Buy a Home
$258,600
Lease/Rent
Detailed Cost Comparison
Cost Category
Buy (10 Years)
Lease (10 Years)
Difference
Housing Payments
$187,200
$216,000
-$28,800
Taxes & Insurance
$47,000
$3,000
+$44,000
Maintenance & Repairs
$35,000
$0
+$35,000
Closing/Transaction Costs
$10,500
$6,000
+$4,500
Total Out-of-Pocket
$279,700
$225,000
+$54,700
Home Equity Built
$120,500
$0
+$120,500
Investment Returns
$0
$33,600
-$33,600
Net Financial Position
-$159,200
-$191,400
+$32,200
Cumulative Cost Timeline
Key Considerations
Building Equity
Monthly payments build ownership
Flexibility
Easy to relocate
Tax Benefits
Mortgage interest deduction
No Maintenance
Landlord handles repairs
Appreciation
Potential property value growth
Liquidity
Capital not tied up in property
Decision Factors Beyond Cost
Length of Stay10 Years
Market ConditionsCurrent rates affect both
Lifestyle PreferencesStability vs. flexibility
Future PlansCareer, family changes
Risk ToleranceMarket fluctuations
Important: This analysis compares out-of-pocket costs and does not include all factors. Buying involves opportunity cost of down payment, while renting involves investment opportunity of savings. Actual costs may vary. This is not financial advice - consult with real estate and financial professionals.
Disclaimer: Lease vs Buy calculations are estimates based on provided inputs. The analysis considers out-of-pocket costs, equity buildup, and investment opportunities. It does not include all possible factors such as tax implications (which vary by individual), emotional benefits of homeownership, or personal preferences. The break-even point varies by market and individual circumstances.