Rent vs. Buy Calculator

See how the true cost of renting compares to buying over time — factoring in home equity and appreciation, not just the monthly payment.

Buy

Home Price
$50,000$2,000,000
Down Payment
$0$500,000
Mortgage Interest Rate
1%15%
Rate shown is based on a 700 FICO score. The average VA loan interest rate today is around 6%. Your actual rate will vary based on credit, loan type, and market conditions.

Loan Term

Property Taxes (Monthly)
$
For a rough estimate, use about 0.9% of the home price per year ÷ 12. Example: $400,000 × 0.9% ÷ 12 ≈ $300/mo. The national average effective property tax rate is approximately 0.87% annually.
Home Insurance (Monthly)
$
For a rough estimate, use about 0.5% of the home price per year ÷ 12. Example: $400,000 × 0.5% ÷ 12 ≈ $167/mo. The national average annual homeowners insurance premium runs approximately 0.4%–0.6% of home value.
HOA (Monthly)
$
Maintenance (Monthly)
$
Home Appreciation Rate
0%10%
The national average home appreciation rate has historically run around 3%–5% per year.

Rent

Monthly Rent
$500$10,000
Annual Rent Increase
0%10%
The national average annual rent increase has historically run around 3%–5% per year.

Comparison Assumptions

How many years do you plan on living there?
1 yr30 yrs
This sets the range shown on the chart, the numbers below, and the summary at the bottom.

Monthly Payment Comparison

Buying
$0
per month
Renting
$0
per month
Monthly Difference$0

Quick Numbers (Year 7)

Cost of Buying$0
Cost of Renting$0
Difference$0
Home Equity (if Buying)$0

These figures already account for home equity built when buying — not just raw cash spent.

Cost Comparison Over Time

Buying Renting

Over 10 Years

$0

Buying saves you money compared to renting.

Buying makes more sense.

Have a Question About Your Scenario?

This calculator provides an estimate only. Actual costs, appreciation, and market conditions will vary. Contact Bryce Pierce for a personalized review of your scenario.

Thank you for choosing us. We are dedicated to helping you achieve your homeownership goals with personalized service and expert guidance. For more information or assistance, feel free to reach out to us anytime!

quick info

Your VA Loan Advisor

Bryce Pierce

Bryce Pierce NMLS #2415547 | Client Direct Mortgage| 2700 Ygnacio Valley Road suite 255 Walnut Creek, CA 94598 | NMLS# 1065732 | Email: [email protected] Phone Number: (949) 813-4713 | https://nmlsconsumeraccess.org