Mortgage vs Rent Calculator
Compare the monthly cost of buying a home (mortgage, taxes, insurance) versus renting.
See which option is more affordable over time.
Mortgage vs Rent Comparison
Mortgage vs Rent compares the true monthly cost of homeownership against renting.
Monthly ownership cost (PITI):
Mortgage Payment = P × [r(1+r)^n] / [(1+r)^n − 1]
Total Monthly Cost = Mortgage + Property Tax + Insurance + HOA + Maintenance
Renting cost:
Monthly Rent Cost = Rent + Renter's Insurance
Over time:
- Mortgage payments build equity; rent does not
- Home values typically appreciate 3–5% annually
- Maintenance costs average 1–2% of home value per year
- Property taxes average 0.5–2.5% of assessed value per year
The 5% Rule (quick comparison): Multiply home price by 5%, divide by 12. If rent is less than this, renting may be cheaper.