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Renting vs. Buying calculator

Renting vs. Buying calculator: Compare the costs and benefits

Trying to decide whether to rent or buy a home? Our Renting vs. Buying calculator helps you weigh the financial differences between the two. By entering details like monthly rent, home price, and how long you plan to stay, you can see a side-by-side comparison of long-term costs and potential equity.

This tool is designed to help you explore which option may be a better fit for your lifestyle, budget, and future goals.

Calculators provided for estimating purposes only.

Consult with your lender to determine precise payment requirements.

Rent vs. Buy

Cost of renting$213,785

Gross cost of buying$182,106

Tax related savings$16,515

Increased equity$227,775

Net cost of buying-$62,183

Total savings$275,968

Investment related savings$22,077

These estimates reflect current trends and could change with future rates, prices, or personal circumstances.

Q&A: Understanding the Renting vs. Buying calculator

Your federal income tax bracket is based on two main factors: your taxable income and your filing status, such as Single or Married Filing Jointly. Taxable income is the amount you earn after deductions, and it determines which bracket you fall into.

To find your bracket:
1. Look up your taxable income on your most recent tax return.

2. Compare that number to the ranges listed for your filing status.

For the most up-to-date federal income tax brackets, visit the IRS website:

View federal income tax rates and brackets

If you are unsure of your exact taxable income, choosing the bracket that most closely matches your estimated income can still give you a helpful estimate.

This is the amount you expect to pay for a home. This could be the listing price or the offer you plan to make. It sets the foundation for your mortgage estimate.

The expected loan amount is usually the total price of the home minus your down payment. For example, if you are purchasing a home for $400,000 and plan to make a down payment of $80,000, your loan amount would be $320,000.

The down payment amount can vary depending on the type of mortgage, your financial situation, and lender requirements. Many buyers put down anywhere from 3 percent to 20 percent of the home's price.

Using the CENTURY 21® Mortgage calculator to help you estimate your loan amount and monthly payments based on the home's price and your planned down payment.

View Mortgage calculator

Yearly property appreciation is the percentage increase in a home's value over the course of a year. To estimate it, compare the current market value of the home to its value one year ago. The difference between those two values, expressed as a percentage, represents the annual appreciation rate.

For example, if a home was valued at $350,000 last year and is now worth $365,000, the appreciation would be approximately 4.3 percent.

You can estimate appreciation by reviewing recent sales data for similar homes in your area. Appreciation rates vary depending on location, market conditions, and property type.

Property taxes vary by location and are typically based on the assessed value of the home and the local tax rate. To estimate the expected annual property tax, start by checking the listing for the home that interests you on century21.com. Many listings include property tax information directly on the page.

If the listing does not include this detail, reach out to one of our local CENTURY 21® independent agents. They can provide accurate, up-to-date information based on the property's location and recent assessments.