Compare Renting vs Buying a Home
Buying Options
Renting Options
Monthly Cost of Buying
$2,513 / month
Monthly Mortgage Payment
$1,796
Monthly Property Tax
$417
Monthly Insurance
$100
Monthly Maintenance
$200
Monthly Cost of Renting
$2,517 / month
Monthly Rent
$2,500
Monthly Renter's Insurance
$17
5-Year Cost Comparison
Total Cost of Buying (5 Years)
$150,771
This total includes your monthly mortgage payments, property taxes, home insurance, and estimated maintenance costs over 5 years. Note that your mortgage payments build equity, unlike rent payments.
Total Cost of Renting (5 Years)
$160,274
This total factors in your monthly rent payments with a 3% annual increase and renter's insurance over 5 years. This amount represents pure expense with no equity building.
Projected Home Appreciation Gain After (5 Years)
$79,637
Based on 3% annual appreciation rate. This is an estimate and actual home values can vary significantly based on market conditions. To get the total value of what the home could be sold for add this number to the original value of the home.
Potential Investment Returns on Down Payment
Based on 7% annual return over 5 years
$40,255
This represents the potential earnings if you invested your down payment of $100,000in the market instead of buying a home. Remember that investment returns can vary significantly and past performance doesn't guarantee future results.