Factors that are part of the equation are the difference in monthly rent versus a mortgage payment, home value appreciation, annual rent increases, the interest rate you will pay on your loan, your marginal tax rate, and the yield you might receive on savings.
Rent or Buy?
Rent or Buy?
Rent |
Buy |
|---|---|
| $ 745,225 | $ 380,045 |
Over the term of your 30-year evaluation period, you will save $365,180 by buying instead of renting
| Year | Advantage of Buying |
|---|---|
| 1 | $ 8,970 |
| 2 | $ 9,192 |
| 3 | $ 9,416 |
| 4 | $ 9,640 |
| 5 | $ 9,865 |
| 6 | $ 10,092 |
| 7 | $ 10,318 |
| 8 | $ 10,546 |
| 9 | $ 10,773 |
| 10 | $ 11,001 |
| 11 | $ 11,228 |
| 12 | $ 11,455 |
| 13 | $ 11,682 |
| 14 | $ 11,907 |
| 15 | $ 12,132 |
| 16 | $ 12,355 |
| 17 | $ 12,576 |
| 18 | $ 12,794 |
| 19 | $ 13,011 |
| 20 | $ 13,224 |
| 21 | $ 13,434 |
| 22 | $ 13,640 |
| 23 | $ 13,842 |
| 24 | $ 14,040 |
| 25 | $ 14,232 |
| 26 | $ 14,418 |
| 27 | $ 14,598 |
| 28 | $ 14,771 |
| 29 | $ 14,936 |
| 30 | $ 15,092 |
| Year | Cost of Renting | Mortgage Costs | Homeowner Costs | Cost of Equity | Tax Savings | Appreciation | Cost of Buying |
|---|---|---|---|---|---|---|---|
| 1 | $ 18,500 | $ 15,285 | $ 5,050 | $ 240 | $ 3,545 | $ 7,500 | $ 9,530 |
| 2 | $ 18,860 | $ 15,285 | $ 5,176 | $ 410 | $ 3,515 | $ 7,688 | $ 9,668 |
| 3 | $ 19,227 | $ 15,285 | $ 5,306 | $ 585 | $ 3,484 | $ 7,880 | $ 9,812 |
| 4 | $ 19,602 | $ 15,285 | $ 5,438 | $ 766 | $ 3,451 | $ 8,077 | $ 9,962 |
| 5 | $ 19,984 | $ 15,285 | $ 5,574 | $ 953 | $ 3,415 | $ 8,279 | $ 10,118 |
| 6 | $ 20,373 | $ 15,285 | $ 5,714 | $ 1,146 | $ 3,377 | $ 8,486 | $ 10,282 |
| 7 | $ 20,771 | $ 15,285 | $ 5,856 | $ 1,346 | $ 3,337 | $ 8,698 | $ 10,452 |
| 8 | $ 21,176 | $ 15,285 | $ 6,003 | $ 1,553 | $ 3,295 | $ 8,915 | $ 10,631 |
| 9 | $ 21,590 | $ 15,285 | $ 6,153 | $ 1,767 | $ 3,250 | $ 9,138 | $ 10,817 |
| 10 | $ 22,012 | $ 15,285 | $ 6,307 | $ 1,988 | $ 3,202 | $ 9,366 | $ 11,011 |
| 11 | $ 22,442 | $ 15,285 | $ 6,464 | $ 2,216 | $ 3,152 | $ 9,601 | $ 11,214 |
| 12 | $ 22,881 | $ 15,285 | $ 6,626 | $ 2,453 | $ 3,098 | $ 9,841 | $ 11,425 |
| 13 | $ 23,328 | $ 15,285 | $ 6,792 | $ 2,698 | $ 3,041 | $ 10,087 | $ 11,646 |
| 14 | $ 23,785 | $ 15,285 | $ 6,961 | $ 2,951 | $ 2,981 | $ 10,339 | $ 11,878 |
| 15 | $ 24,251 | $ 15,285 | $ 7,136 | $ 3,213 | $ 2,917 | $ 10,597 | $ 12,119 |
| 16 | $ 24,726 | $ 15,285 | $ 7,314 | $ 3,484 | $ 2,850 | $ 10,862 | $ 12,371 |
| 17 | $ 25,210 | $ 15,285 | $ 7,497 | $ 3,765 | $ 2,778 | $ 11,134 | $ 12,635 |
| 18 | $ 25,704 | $ 15,285 | $ 7,684 | $ 4,056 | $ 2,703 | $ 11,412 | $ 12,910 |
| 19 | $ 26,208 | $ 15,285 | $ 7,876 | $ 4,357 | $ 2,623 | $ 11,697 | $ 13,198 |
| 20 | $ 26,723 | $ 15,285 | $ 8,073 | $ 4,668 | $ 2,538 | $ 11,990 | $ 13,498 |
| 21 | $ 27,247 | $ 15,285 | $ 8,275 | $ 4,991 | $ 2,449 | $ 12,290 | $ 13,813 |
| 22 | $ 27,782 | $ 15,285 | $ 8,482 | $ 5,326 | $ 2,354 | $ 12,597 | $ 14,142 |
| 23 | $ 28,328 | $ 15,285 | $ 8,694 | $ 5,672 | $ 2,254 | $ 12,912 | $ 14,485 |
| 24 | $ 28,884 | $ 15,285 | $ 8,911 | $ 6,032 | $ 2,149 | $ 13,235 | $ 14,844 |
| 25 | $ 29,452 | $ 15,285 | $ 9,134 | $ 6,404 | $ 2,037 | $ 13,565 | $ 15,220 |
| 26 | $ 30,031 | $ 15,285 | $ 9,362 | $ 6,790 | $ 1,919 | $ 13,905 | $ 15,613 |
| 27 | $ 30,622 | $ 15,285 | $ 9,596 | $ 7,190 | $ 1,795 | $ 14,252 | $ 16,024 |
| 28 | $ 31,224 | $ 15,285 | $ 9,836 | $ 7,604 | $ 1,664 | $ 14,609 | $ 16,453 |
| 29 | $ 31,838 | $ 15,285 | $ 10,082 | $ 8,034 | $ 1,525 | $ 14,974 | $ 16,903 |
| 30 | $ 32,465 | $ 15,285 | $ 10,334 | $ 8,480 | $ 1,379 | $ 15,348 | $ 17,373 |
