Calculator
Rent versus buy
Owning costs more in year one and less in year nine. The only useful question is where the lines cross, and whether you expect to still be here.
The year buying moves ahead
Owning costs more in year one and less in year nine. The only question worth asking is where the lines cross, and whether you will still be here.
| Year | Rent paid | Owning, net of equity | Difference |
|---|---|---|---|
| 1 | $25,800 | $56,370 | $30,570 behind |
| 2 | $52,374 | $75,608 | $23,234 behind |
| 3 | $79,745 | $94,079 | $14,334 behind |
| 4 | $107,938 | $111,750 | $3,812 behind |
| 5 | $136,976 | $128,583 | $8,393 ahead |
| 6 | $166,885 | $144,540 | $22,345 ahead |
| 7 | $197,692 | $159,581 | $38,111 ahead |
| 8 | $229,422 | $173,663 | $55,759 ahead |
| 9 | $262,105 | $186,742 | $75,363 ahead |
| 10 | $295,768 | $198,771 | $96,997 ahead |
| 11 | $330,441 | $209,700 | $120,741 ahead |
| 12 | $366,154 | $219,479 | $146,675 ahead |
Swipe the table sideways to see every column.
What this model does and does not do
Every rent versus buy calculator is an argument dressed as arithmetic. Ours shows its assumptions and lets you change all of them.
First-time buyer routeBecause we charge the transaction properly. Ours assumes 3.1% of price in buying costs, which in Philadelphia is dominated by the buyer's customary half of the 4.278% transfer tax, and 6% in selling costs. Calculators that ignore those produce a crossover three or four years too early.
Yes, at 1% of value per year by default, which is a conventional planning figure. On a hundred-year-old row home with original systems, 1.5% is more realistic. The field is editable because the right number depends on the building.
This model does not credit renters with investing the difference, which flatters buying slightly. If you would genuinely invest an $40,000 down payment and the monthly difference, push the appreciation input down to compensate.
No. At low appreciation, high maintenance and high transaction costs, renting can stay ahead for the whole fifteen-year window. Try 1% appreciation and 1.5% maintenance and watch what happens. We would rather you saw that here than found out later.
Decided to buy? Start with the pre-approval
A letter with a named underwriter and a defined price beats a portal estimate in every negotiation in this market.
No application fee. Soft credit pull at pre-qualification. Flat $1,095 origination at closing.