Rent Versus Buy Calculator
Rent Versus Buy: a planned Super Calculator tool. Covers home price (currency). Stub page: the tool, its formula and a worked example are not published yet.
Rent Versus Buy Calculator is a planned calculator in the real estate section of Super Calculator, covering rent versus buy.
What this calculator will compute
Inputs: home price (currency), down payment (%), rate (%), term (years), property tax (%), insurance (currency), maintenance (% of value), HOA (currency), appreciation (%), current rent (currency), rent growth (%), investment return (%), marginal tax rate (%), standard deduction (currency), selling costs (%) and horizon (years).
Outputs: net present value of each path (currency), break-even horizon (years), annual cost of each path (currency) and sensitivity to appreciation and rent growth.
Formula, recorded as scope and not yet verified against a primary source: Net present value comparison of two cash flow streams over a holding horizon: buying (down payment, closing costs, PITI, maintenance, less principal accrual, less tax benefit, plus sale proceeds net of selling costs and capital gains treatment) against renting (rent escalating at an assumed rate, renters insurance, and the opportunity return on the down payment invested at the alternative rate). The break-even horizon is where the two present values cross.
Status
This page is a stub. The calculator is not built, no figure on this page has been verified against the authority that sets it, and nothing here should be used to make a decision. The page exists so that the site structure is complete and so that articles can link this concept on first mention.
The stub carries noindex, nofollow and is excluded from the sitemap.