Home Buying Decision Calculator
Estimate your monthly payment, total cost of ownership, future home value, and the long-term difference between buying and renting.
Purchase Details
Years
Monthly Costs
Annual percent of home price
Annual percent of home price
Optional estimate if down payment is below 20%
Compare & Project
Expected annual increase in home value
Used for opportunity cost of extra cash flow
Estimated Monthly Payment
$0
Principal, interest, taxes, insurance, HOA, and PMICash Needed for Down Payment
$0
Based on your selected down payment percentageEstimated Loan Amount
$0
Home price minus down paymentMonthly Difference vs Rent
$0
Positive means buying costs more monthly than rentingPrincipal & Interest
$0
Mortgage payment onlyMonthly Taxes
$0
Estimated from property tax rateMonthly Insurance
$0
Estimated from insurance rateFuture Home Value
$0
Projected value at the end of your selected timelineTotal Interest Paid
$0
Total interest over the full mortgage termProjected Equity
$0
Future home value minus remaining loan balanceTotal Cost of Ownership
$0
Home price plus estimated interest paidInvested Rent Difference
$0
Future value if extra monthly cost were invested insteadBuy vs Invest Difference
$0
Future home value minus invested rent difference| Year | Home Value | Loan Balance | Estimated Equity | Annual Ownership Cost | Annual Rent | Annual Difference |
|---|
Definitions & Assumptions
Interest Rate
The annual cost of borrowing on your mortgage loan. Even small rate changes can significantly impact monthly payments and total interest paid over time.
The annual cost of borrowing on your mortgage loan. Even small rate changes can significantly impact monthly payments and total interest paid over time.
Property Tax Rate
Estimated annual property taxes based on your home's value. Many buyers estimate between 1%–1.5% depending on location.
Estimated annual property taxes based on your home's value. Many buyers estimate between 1%–1.5% depending on location.
Home Insurance
Estimated annual homeowners insurance expense based on home value and location.
Estimated annual homeowners insurance expense based on home value and location.
PMI
Private Mortgage Insurance may apply when putting less than 20% down. Costs vary by loan type and credit profile.
Private Mortgage Insurance may apply when putting less than 20% down. Costs vary by loan type and credit profile.
Home Appreciation
The estimated annual increase in home value. Long-term historical appreciation often ranges around 3%–5%, though markets vary.
The estimated annual increase in home value. Long-term historical appreciation often ranges around 3%–5%, though markets vary.
Opportunity Cost
A comparison between building equity through home ownership versus investing additional monthly cash flow elsewhere.
A comparison between building equity through home ownership versus investing additional monthly cash flow elsewhere.
Buy vs Rent
This calculator is designed to illustrate long-term financial tradeoffs between owning and renting rather than predict exact outcomes.
This calculator is designed to illustrate long-term financial tradeoffs between owning and renting rather than predict exact outcomes.