Rent vs Buy calculator

Rent vs. Buy Calculator

Use the rent vs. own calculator to make the right decision for you

Wondering what the difference is between buying or renting? Our calculator helps you look at your financial situation and determine which option is best for you.

Rent vs Buy analysis
We will calculate the comparative costs between renting versus owning a home.

Sales Price of the Home:
Down Payment: (%) or ($)
Interest Rate:
Property State:
Term of the Proposed Loan:
Annual Property Appreciation:
(assume 6% appreciation unless otherwise known)
Current Monthly Rent:
Expected Growth Rate of Savings:
(assume 3% savings rate unless otherwise known)
Income Tax Bracket:

Fill in the fields above and click the Calculate Below button

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How our buy vs. rent calculator works

The decision between renting or owning a home isn’t one to be taken lightly, nor is it one that can immediately be asked and answered. For most people, the rent vs. own debate can go on for years and will be highly influenced by other factors going on in their lives. Even when the timing seems right to buy, those factors could change and suddenly more time is needed. Maybe you inherit some money and have more available for a down payment; maybe you find the perfect house in a less expensive area; or maybe you need to pay for unforeseen medical expenses. It’s impossible to determine a “right” time to stop renting and buy a home, but our rent vs. buy calculator can help you get an idea of where you stand.

You’ll need to have some information ready to use the buy vs. rent calculator:

  • Sales price of the home–the purchase or listing price of the house you want to buy
  • Down payment–the up-front amount you are planning to put down on the purchase of the home. It can be entered as a dollar amount or a percentage. Please note that any percentages over 99% will automatically be calculated as a dollar amount.
  • Estimated interest rate–the rate that you expect to receive on your financing
  • Preferred mortgage term–the term you would like to have on your new home loan (15-year, 20-year, 30-year, etc.)
  • Monthly PMI–the amount you pay for private mortgage insurance. For loans secured with less than 20% down, PMI is estimated at 0.5% of your loan balance each year
  • Property tax rate–these taxes are generally imposed by the county, and often include local taxes for school districts, utilities or city governments. Property tax rates and rules vary depending on your location
  • Home insurance–your homeowner’s insurance rate which equates to approximately $500-$1100 per year

Association and maintenance fees–any fees you are required to pay per month with the ownership of this home. Also include any other maintenance costs you expect to incur with the ownership of this home that you are not paying while you continue to rent

***Disclaimer: This calculator is offered for illustrative and educational purposes only and, it is not intended to replace a professional estimate. Calculator results do not reflect all loan types and are subject to individual program loan limits. All calculations and costs are estimates and therefore, Guild Mortgage (“Guild”) does not make any guarantee or warranty (express or implied) that that all possible costs have been included. The assumptions made here and the output of the calculator do not constitute a loan offer or solicitation, or financial or legal advice. Please connect with a Guild loan professional for a formal estimate. Every effort is made to maintain accurate calculations; however, Guild assumes no liability to any third parties that rely on this information and is not responsible for the accuracy of rates, APRs or any other loan information factored in the calculations.