Free Tool

Rent vs. Own Calculator

Plug in your numbers and see which option builds more wealth over your timeline.

How long are you planning to stay?

Timeline7 years

1 yr30 yrs

RRenting

Monthly Rent$2,200

Annual Rent Increase3.0%

Renter's Insurance$20/mo

OOwning

Home Price$400,000

Down Payment10.0%

$40,000 down · PMI applies

Interest Rate6.8%

Loan Term

Property Tax Rate1.8%

$600/mo

Home Insurance$150/mo

HOA Fees$0/mo

Annual Maintenance1.0%

$333/mo

Assumptions

Home Appreciation4.0%

Investment Return (opportunity cost)7.0%

Return if down payment were invested instead

Over 7 years

Buying wins

Owning saves you approximately $41,156 compared to renting over this period.

Break-even: ~year 1

Monthly Cost (Year 1)

Renting$2,220/mo

Owning$3,628/mo

Monthly Own Breakdown

Principal & Interest$2,335

PMI(until 20% equity)$210

Property Tax$600

Home Insurance$150

Maintenance$333

Total$3,628

Net Cost Over 7 Years

Total rent paid$179,897

Total own cost (after equity)$138,741

Own cost includes closing costs (~3%), selling costs (~6%), and subtracts projected equity. Rent cost subtracts investment gains on the down payment.

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This calculator provides estimates for educational purposes only and does not constitute financial advice. Results are based on the inputs provided and simplified assumptions. Actual costs will vary. Consult a licensed mortgage professional before making any financial decisions. Eddie Gamez | NMLS# 2115994 | Edge Home Finance