Calculator · Florida
Rent vs. buy calculator
An honest comparison has to include the things people leave out: maintenance, the cost of selling, and what a renter would earn by investing the money they did not put down. All three are in here, and all three are adjustable.
Is it better to rent or buy?
It depends almost entirely on how long you stay. Buying carries large one-off costs at both ends — closing costs going in, selling costs coming out — so there is a break-even year before which renting wins. This calculator finds that year for your numbers.
Buying beats renting from
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After your chosen horizon, buying leaves you $0 ahead of renting
- Net position — buying$0
- Net position — renting$0
- Net sale proceeds at the end$0
Net position year by year
This model assumes the renter invests the purchase cash plus any monthly difference at the return you set, and that the buyer sells at the end of the period and pays the selling cost. It excludes the mortgage interest and property tax deduction, which helps buying for itemizers, and it excludes the risk that appreciation doesn't happen. Small changes to appreciation and investment return move the answer a long way — try both optimistic and pessimistic numbers before deciding.
Questions about this calculator
How long do you need to own a home to break even?
Commonly five to seven years, though it varies widely with appreciation, selling costs and the gap between rent and the cost of owning. This calculator finds the specific crossover year for your inputs rather than quoting a rule of thumb.
Does buying always beat renting eventually?
No. If appreciation is low, the selling cost is high and the renter invests the difference at a decent return, renting can stay ahead indefinitely. Try a pessimistic appreciation figure and see how much the answer moves.
Does this include maintenance costs?
Yes, as an annual percentage of the property's value, which is the standard way to reserve for it. It also includes closing costs to buy and the cost of selling at the end, both of which are commonly omitted.
Where this applies
Related loan programs
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