How to Use the Rent vs. Buy Home Affordability & Opportunity Cost Calculator
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1
Enter home purchase price, down payment, mortgage interest rate, and property tax rate.
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2
Enter equivalent monthly rent and assumed annual rent inflation.
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3
Set investment horizon (e.g., 10 years) and expected stock market return (e.g., 7%).
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4
Inspect the crossover year when buying becomes more profitable than renting.
Practical Example & Use Case
Common Real-World Scenario
Discovering that buying a $450,000 home breaks even against a $2,200/month rental in year 6 once equity accumulation overtakes closing costs.
Technical Notes & Limitations
Browser Engine Architecture
Calculates unrecoverable costs of homeownership (taxes, maintenance, mortgage interest) vs unrecoverable rent.
Frequently Asked Questions
What is the 5% rule in real estate?
The 5% rule estimates unrecoverable home costs as ~1% property tax + 1% maintenance + 3% cost of capital.