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Rent vs. buy calculator

See exactly when buying beats renting in your situation — year by year.

Home price$400,000
Down payment20% ($80,000)
Interest rate6.5%
Current monthly rent$1,800/mo
Home appreciation (TN avg ~4%)4.0%/yr
Rent increase3.0%/yr
Investment return on savings7.0%/yr
How long you plan to stay10 years
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Buying wins after year 4
Over 10 years, buying saves you $48,200
Total cost of buying
$0
Net of equity & appreciation
Total cost of renting
$0
Including investment gains on savings
Cumulative cost over time
Buying Renting
Buying cost breakdown

This model accounts for: mortgage P&I, property tax (TN 0.46%), insurance (0.5%), maintenance (1%/yr), PMI if applicable, closing costs at purchase (3%) and sale (6%), opportunity cost of down payment at your specified investment return, home equity accumulation, and appreciation. For education only.