AlMustqbal tools

Rent vs. Buy Calculator

Compare costs over 7 years.

Rental Scenario

Monthly Rent ($)

Renters Insurance ($/mo)

Annual Rent Increase (%)

Buying Scenario

Home Price ($)

Down Payment ($)

Mortgage Rate (%)

Property Tax ($/yr)

Maintenance/HOA ($/mo)

Home Appreciation (%/yr)

Buying is cheaper by $10,000

The Million Dollar Question

Is renting "throwing money away"? Not necessarily. While buying builds equity, it also comes with unrecoverable costs like interest, property taxes, insurance, and maintenance. Our **Rent vs. Buy Calculator** runs the math over a 7-year period (the average time people stay in a home) to see which path wins financially.

The 5% Rule

A quick way to compare: Multiply the home price by 5%. Divide by 12. If the monthly rent is lower than this number, renting is likely the better financial choice. The 5% accounts for cost of capital (3%), property tax (1%), and maintenance (1%).

Hidden Costs of Homeownership

When you rent, a broken water heater is the landlord's problem. When you own, it is a $1,000 emergency. Buyers often underestimate "Maintenance CapEx"—the money you should be saving monthly for inevitable roof, HVAC, and appliance replacements.