Mortgage vs rent,
the real math.
Buying isn't always better than renting. This calculator includes the opportunity cost of your down payment, maintenance, property tax, and the full 5% Rule. The factors most calculators quietly ignore.
If comparable rent is below this, renting is likely better financially. Based on ~5% of home value annually for the three unrecoverable costs of ownership.
| Horizon | Buy net | Rent+invest net | Winner |
|---|
This calculator focuses on the financial decision. Homeownership has real non-financial benefits (stability, customization, community) that are not quantifiable here.
What this tool assumes
- Monthly mortgage payment uses the standard P&I amortization formula.
- Property tax, insurance, HOA, and maintenance inflate at the same rate as home value.
- Opportunity cost uses the investment-return rate you supply.
- Closing costs and selling costs are not modeled.
- Mortgage interest deduction depends on your filing status and itemization; not modeled.
Not financial advice. Based on Ben Felix's 5% rule for unrecoverable costs.
HOW THIS IS CALCULATED
This tool runs entirely in your browser — no data is sent to any server. All formulas use standard financial math. Verify the methodology or inspect the source code in your browser's dev tools.