Calculator

Rent vs Buy Calculator

informationMortgage Information

information
Home Price

Enter the amount of the home's value.

information
Down Payment

Enter the amount or percentage of the down payment.

information
Mortgage Amount

Enter the amount of the actual mortgage after down payment.

information
Interest Rate

Enter the current Market Rate.

information
Loan Term

Choose the number of years of the Mortgage.

information
Mortgage Start Date

Choose the month and year the mortgage will start.

information
PMI Rate

Private Mortgage Insurance (PMI) protects the lender from losing money if you default on the loan. Most mortgages with a down payment of less than 20% require PMI. his is an estimate based on the details above. PMI can vary significantly based on several factors.

Optional Information

information
Home Insurance

Enter the annual amount of insurance.

information
Annual Tax Amount

Enter the annual tax amount.

information
HOA Dues

Enter the annual HOA dues.

informationBuying Assumptions

informationRenting Assumptions

information
Property Value or Purchase Price

Enter the property Value or purchase Price.

information
Unit 1 Monthly Rent

Enter the Unit 1 Monthly Rent.

information
Annual Property Taxes

Enter the Annual Property Taxes.

information
Annual Insurance

Enter the Annual Insurance.

information
Monthly HOA Fee

Enter the Monthly HOA Fee.

information
Annual Utilities

Enter the Annual Utilities.

information
Closing Costs

Enter the Closing Costs.

Email Me This

Years 1 years

Results Summary

information
Buying Renting
Cash Spent $ $
Home value -$ --
Balance on Loan $ --
Closing costs on sale $ --
Adjusted Net Cash Savings $ $

Rent

$

Buy

$556
YEAR

2

 BUY GAIN

$43,244
BUY

$43,244

 RENT

$43,244
Out of Pocket Cost:If you opt for homeownership of a property valued at $, your total expenses out of your pocket for 2 years would add up to $. However, if you choose to rent instead, your overall expenditure would come to $, thus saving you $ (which also covers the down payment you would have otherwise made).
Financial Gain:After 2 years, if you choose to purchase the property, the value of equity in your home would be $, which you can access upon selling it.
Summary:Based on the overall expenses incurred and the equity gained, it would be more advantageous for you to buy the property instead of renting, provided you intend to reside in the house for more than 2 years.
Cash Flow

$

 Cap Rate

%

Deal Breakdown

information
Deal Breakdown

A breakdown of your rental loan deal.

  • Loan Amount:
  • Down Payment:
  • Mortgage Payment:
  • Monthly Payment:
  • Origination Fee Amount:

Deal Metrics

information
Deal Metrics

A metrics of your rental loan deal.

  • Total Closing Costs:
  • Cash Needed to Close:
  • Price Per Unit:
  • Gross Rental Income:
  • Operating Expenses:
  • Net Operating Income:
Cash on Cash Return

%

 DSCR

Return Metrics

information
Deal Metrics

A metrics of your rental loan return.

  • Cash Flow:
    Annual cash flow after all expenses and mortgage are paid.
  • Cap Rate:
    Cap rate, or capitalization rate, is a metric that divides your net operating income (not including your mortgage) by the purchase price or property value. It is most useful in comparing multifamily properties.
  • Cash on Cash Return:
    Cash on cash return is a metric that divides your pre-tax cash flow by the total cash invested in the deal. This is a key metric for most investors.
  • DSCR:
    DSCR calculates the ratio of rental income to your mortgage payment. Ideally, you'll have a DSCR of 1.0 or higher.
Borrower Equity Needed

$

 Net Profit

$

Deal Breakdown

information
Deal Breakdown

A breakdown of your rental loan deal.

  • Loan Amount:
  • Down Payment:
  • Monthly Interest Payment:
  • Total Interest Over Term:
  • Origination Fee Amount:
  • Other Closing Costs Amount:
  • Cost To Sell Amount:

Deal Metrics

information
Deal Metrics

A metrics of your rental loan deal.

  • Closing Costs:
  • Carrying Costs:
  • Borrower Equity Needed:
  • Total Cash In Deal:
Return on Investment

%

 Loan to After Repaired Value

%

Return Metrics

information
Deal Metrics

A metrics of your rental loan return.

  • Net Profit:
  • Loan to After Repaired Value:
  • ROI:

Disclaimer:

Results received from this calculator are designed for comparative purposes only, and accuracy is not guaranteed. We do not guarantee the accuracy of any information or inputs by users of the software.

This calculator does not have the ability to pre-qualify you for any loan program which should be verified independently with one of our Loan Consultants. Qualification for loan programs may require additional information such as credit scores and cash reserves which is not gathered in this calculator. Information such as interest rates and pricing are subject to change at any time and without notice. Additional fees such as HOA dues are not included in calculations. All information such as interest rates, taxes, insurance, PMI payments, etc. are estimates and should be used for comparison only. We do not guarantee any of the information obtained by this calculator.

Back To Top