Make the right move. Compare the true cost of homeownership against renting and investing the difference.
Based on Net Wealth (Equity vs. Investments)
How we calculate this:
Most calculators only look at the mortgage payment. We look at everything.
When you buy, you don't just pay the down payment. You pay 3-4% of the home price in "Closing Costs". This includes appraisal fees, title insurance, and yes, often a 1% origination fee just to the lender for processing the loan.
On a $350k home, that's $10,500+ gone immediately.
Renters call the landlord when the fridge breaks. Owners write a check. A good rule of thumb is to budget 1% of your home's value every year for maintenance.
New roof? HVAC? Water heater? It's not "if", it's "when".
The biggest hidden cost is the money you didn't invest. That $70k down payment could have grown in the stock market.
If the market returns 7% and your home appreciates 3%, your equity is working harder in the market than in your walls.
Homeowners can deduct mortgage interest and property taxes from their taxable income—but only if they itemize deductions and exceed the standard deduction ($14,600 single / $29,200 married).
The catch: Property tax deductions are capped at $10,000/year (SALT cap), and mortgage interest is only deductible on the first $750,000 of debt. Plus, as you pay down your mortgage, the interest portion decreases, making the benefit smaller over time.
Many homeowners don't actually benefit because their standard deduction is higher than their itemized deductions.
The math assumes perfect discipline. This calculator assumes that if renting is cheaper, you'll invest 100% of the difference every single month. But will you?
Homeownership acts as forced savings—your mortgage payment builds equity whether you feel like it or not. Renters need to manually invest their savings, and life gets in the way: vacations, dining out, that new gadget you "need."
Be honest with yourself: Use the "Savings Discipline" slider in advanced settings. If you'll only invest 50% of your rent savings, the math changes dramatically. A home might be the better choice not because of the numbers, but because it forces you to save.
This is why buying often wins in practice, even when renting wins on paper.
It's not all bad news. Buying locks in your housing cost (no rent hikes!) and acts as forced savings.
If you stay long enough, these benefits can outweigh the hidden costs.