Rent Or Buy Home Calculator «Trusted Source»

: Accounts for opportunity cost (what you'd earn by investing your down payment), the 2017 mortgage interest deduction cap, and localized appreciation.

: Critics argue its default assumptions can be overly pessimistic toward buying, specifically regarding how high home price growth must be to "win". rent or buy home calculator

Rent-vs-buy calculators are essential for determining the "break-even point"—the exact year when the total cost of homeownership becomes less than the total cost of renting. : Accounts for opportunity cost (what you'd earn

: Automatically provides national averages for insurance and property taxes if you don't have exact figures. : Automatically provides national averages for insurance and

: Generally favors renting and investing the difference. Common Criticism of Calculators

: The interface uses several sliders that some find less precise than text-entry fields. Key Metrics to Watch

: The most overlooked factor. Calculators like Zillow's show that if you rent and invest your down payment, you could potentially out-earn a home's equity growth, especially in the first 3–5 years.