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Rent vs. buy calculator

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

Your situation
Home price$400,000
Down payment20% ($80,000)
Interest rate6.5%
Current monthly rent$1,800/mo
Assumptions
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
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.

Renting vs. buying: the honest version

Here's something you won't hear from every agent: sometimes renting is the right call. If you might move again within a couple of years, if your income is in flux, or if you're still deciding which part of Tennessee or Kentucky fits your life, renting buys you flexibility that no amount of equity can match. Patrick tells clients that plainly — even when it means no sale. The referrals that come back later are worth more than a rushed deal today.

The calculator above is a solid starting point. It models the big financial forces — mortgage payments, property taxes, insurance, maintenance, appreciation, and what your down payment could earn if you invested it instead. What it can't model is your life: how stable your job is, whether you'd actually enjoy owning (someone has to fix the water heater), how long you'll really stay, and what's happening in the specific neighborhood you're considering. Averages don't buy houses — you do.

First time thinking about buying?

The math often tilts toward buying sooner than first-time buyers expect — especially in Tennessee, where THDA down payment assistance programs can shrink the biggest hurdle: the cash you need up front. Patrick genuinely enjoys working with first-time buyers and can connect you with local lenders who know these programs well, so you're comparing real numbers instead of guesses.

Not sure which side of the line you're on? Talk it through with Patrick — a straight answer, no pressure, and if renting is your best move right now, he'll say so.