Rent versus buy calculator
Am I better off renting for now?
Renting is not throwing money away and buying is not automatically the smart move. Which one wins depends on how long you stay, what rents do, and how much the house appreciates.
Rent versus buy calculator
After the period you chose
- Renting
- Buying
- Total rent paid$125,600
- Total spent on owning$182,000
- Equity and appreciation captured$96,400
- Selling costs at the end$26,100
- Net cost of buying$107,200
Over five years, buying comes out ahead on these assumptions.
Read the buyer guideEstimates only. Results depend on the assumptions you enter and are not a quote, a rate lock or an offer to lend.
How to read the result
This compares total cost over a period you choose, counting the equity you build and the appreciation you capture on the buying side, against rent increases on the other.
Time horizon decides it
Buying rarely wins over two years because closing costs and selling costs eat the gains. Over seven it usually does.
Equity is not free money
The equity you build in year one is mostly your down payment, not your payments. Amortization is slow early on.
Include the costs renters do not have
Maintenance, HOA dues and the higher insurance premium on an owned home all belong in the comparison.
About this calculator
Metro Atlanta rents have historically moved in a 3% to 5% annual range over long periods. We default to 3.5%, which is a moderate planning assumption.
We default to 3% annually. Atlanta has had periods well above and well below that. Do not build a decision around an optimistic number.
No. Mortgage interest deductibility depends on whether you itemize, which most households no longer do. Ask your CPA rather than assuming a benefit.
The other three tools
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Turn the estimate into a letter
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Free consultation. Sample rates and assistance amounts shown on this site are illustrations, not offers.