Compare the true financial cost of renting versus buying over 10 years. Monthly buy costs include
principal & interest, property taxes, and PMI. The equity chart uses proper amortization
(front-loaded interest) and subtracts closing costs so the comparison reflects your real net
position. All fields are independent of the Home Swap Calculator.
Not financial advice. This tool is for informational purposes only. It does not constitute financial, mortgage, tax, or legal advice. Consult a qualified professional before making any real estate or financial decisions.
Financial Profile
Your income, savings & growth assumptions
$
After-tax monthly income
%
% of monthly pay saved
%
Annual income growth
$
Total liquid savings available
%
Annual return if savings stay invested instead of used as a down payment
Renting Scenario
Your current or projected rent costs
$
Base monthly rent payment
$
Monthly renters insurance cost
%
Expected yearly rent growth
%
General inflation (affects renters insurance)
Rent increases compound annually. Renters insurance grows with the inflation rate.
Buying Scenario
Prospective home purchase details
PURCHASE & FINANCING
$
Expected purchase price
$
Upfront payment; used vs. invested in Chart 2
$
Lender fees, title, escrow, etc.
%
Annual interest rate
yrs
Mortgage length
TAXES, PMI & GROWTH
%
Annual tax as % of home price
%
Annual property tax growth
$
Required if down < 20%; auto-drops when LTV ≤ 80%
%
Expected annual appreciation
MONTHLY RENT (YR 1)
—
rent + insurance
MONTHLY BUY COST (YR 1)
—
—
PMI DROPS OFF
—
once LTV reaches 80%
RENT EXCEEDS BUY
—
monthly cost crossover
EQUITY BREAK-EVEN
—
equity vs. invested capital
10-YEAR VERDICT
—
—
Monthly Cost Comparison
Total monthly housing cost: rent vs. buy (P&I + property tax + PMI) over 10 years
Rent compounds at your annual rent increase rate; renters insurance grows with inflation.
Buy includes fixed P&I, property taxes (growing at your tax increase rate), and PMI until
LTV reaches 80%. Excludes homeowners insurance and maintenance.
YEAR 1 MONTHLY BREAKDOWN
Principal & interest—
Property tax—
PMI—
Total buy cost—
10-YEAR TOTALS
Total rent paid—
Total P&I paid—
Total prop. taxes—
GROWTH RATES
↑
Rent increase
Annual
%
↑
Prop. tax increase
Annual
%
Equity vs. Invested Capital Growth
Net home equity (after closing costs) vs. investing the same capital over 10 years
Net home equity = appreciated home value − remaining loan balance (proper amortization, front-loaded interest) − closing costs. Starts below your down payment because closing costs are immediately sunk.
Invested capital = your down payment + closing costs compounded at the opportunity cost rate — what that same money would grow to in the market.