Compare this month’s rent to a fully financed mortgage payment plus tax and insurance.
| Buy / month | – |
| Buy − rent | – |
Use this rent-vs-buy calculator as a first look at cash out the door, not a 30-year verdict. It ignores building equity, the cash sitting in a down payment, selling costs, and rent inflation. The sketch pretends you finance 100% of the price.
Buy/month = loan payment on the full price + tax and insurance. The loan payment uses the same formula as the mortgage calculator (annual rate / 12, term in months). Gap = buy − rent (positive means buying costs more this month). Type 4 for a 4% rate.
Rent / month: What you pay (or would pay) in rent each month.
Price (100% LTV sketch): The home price. This sketch pretends you finance all of it.
Rate (%): Yearly mortgage rate as a percent.
Term (years): Mortgage term in years, usually 30 or 25.
Tax + insurance / month: Property tax and home insurance, averaged per month.
Buy / month: Mortgage payment plus tax and insurance.
Buy − rent: Monthly cash gap (positive = buying costs more this month).
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