Rent vs Buy Calculator

Our calculator uses your zip code to pull current median home prices and average rents for your area. It then runs 1,000 simulations over 30 years, accounting for mortgage rates, property taxes, maintenance costs, rent increases, home appreciation, and investment returns on the money saved by renting. The result shows you the probability that buying or renting will build more wealth.

It depends on your local market, how long you plan to stay, and current interest rates. In many Southeast markets like Mississippi, Alabama, and Tennessee, buying often wins over 7-10 years due to lower home prices. Our calculator gives you a personalized answer based on real market data.

While 20% is traditional, many buyers put down 3-5% with FHA or conventional loans. Our calculator lets you adjust the down payment to see how it affects the rent vs. buy comparison. A smaller down payment means more money invested in the market if you rent.

The calculator accounts for your mortgage payment (principal and interest), property taxes, homeowner’s insurance, and maintenance costs (typically 1% of home value per year). It compares these against rent plus the investment returns you’d earn on your down payment and monthly savings.

The calculator uses current market estimates for your area and runs 1,000 randomized simulations to account for uncertainty in home prices, rent growth, and investment returns. Results show the range of likely outcomes, not just a single prediction. This gives you a realistic picture of the financial tradeoffs.

Yes. Homeowners need homeowner’s insurance (often required by lenders), and renters should carry renter’s insurance to protect personal belongings. Bridgeway Insurance Agency can help you find the right coverage at the best rate — whether you’re buying or renting. Contact us at 877-418-2484 for a free quote.