Mortgage vs. Rent Comparison Calculator

How to compare monthly housing costs?

Comparing monthly payments helps you identify immediate cash flow changes, which is vital for month-to-month budgeting. However, it is important to note that this comparison focuses primarily on liquidity and doesn't account for long-term equity accumulation or the variable costs of home maintenance.

Comparison Formula

Difference = Absolute Value (Rent - Mortgage)

Using the comparison: an example

Consider a scenario where your current rent is $2,000 per month and a projected mortgage payment for a similar property is $2,400. This results in a $400 monthly difference, representing the additional cash flow needed to transition from renting to owning.

1. Input total rent including utilities
2. Input total mortgage (PITI)
3. Calculate the monthly delta

Frequently Asked Questions

What about maintenance costs? Buying usually requires budgeting approximately 1% of the home's value annually to cover repairs and ongoing upkeep.

Does this include tax benefits? No, this is a cash-flow only view. While homeownership can offer tax deductions, they vary significantly by individual and location.

What are non-financial factors? Beyond the numbers, consider lifestyle preferences, long-term neighborhood stability, and your need for mobility versus permanent roots.