Rent vs. Buy Calculator

Should You Rent or Buy? Run the Numbers.

Compare the true long-term cost of renting against owning, including equity built, home appreciation, maintenance, and the opportunity cost of investing your down payment instead.

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Your Inputs

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All numbers are estimates. Your real loan depends on credit, equity, property type, and current rates. Run the math, then request a free quote.

Results

Net Result $0
Total Cost, Renting$0
Total Cost, Owning$0
Home Value at End$0
Down Payment if Invested$0
Winner
Break-Even Year
Equity Built$0
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How to Use It

Headline Rent vs Mortgage Misses the Point

"My mortgage would be the same as my rent" is the most common, and most misleading, way to think about this decision. Renting and owning are fundamentally different financial structures. Renters don't build equity, but they don't pay property tax, maintenance, or closing costs. Buyers tie up a large down payment that could otherwise earn returns elsewhere.

This calculator accounts for all of that. It estimates total cost on each side over your time horizon, plus the equity you'd build through principal paydown and appreciation. The honest answer often depends on how long you'll stay.

What Actually Tips the Scale

  • Time horizon: staying 7+ years usually favors buying. Less than 3, usually renting.
  • Appreciation: California historic averages range 3–5%, with regional variation.
  • Rent inflation: California rent has grown 4–6% annually in many markets.
  • Investment return assumption: what your down payment could earn elsewhere.
  • Maintenance: the 1% annual rule is a useful baseline for budgeting.
Common Questions

Calculator FAQ

How long do I need to stay for buying to win?

Typically 5–7 years, but it depends heavily on rate, appreciation assumption, and rent inflation. The calculator's Break-Even Year tells you the specific answer for your inputs.

What's a realistic appreciation assumption?

California's long-run historical average is roughly 3–5% per year, with significant volatility. We default to 3.0% as a conservative baseline.

Should I include the opportunity cost of my down payment?

Yes. The calculator assumes you'd invest your down payment at a rate you choose (default 6%). If you wouldn't otherwise invest it, lower this number.

Does the calculator account for tax deductions?

Not in this version. Mortgage interest and property tax can be deductible up to certain caps if you itemize. We can model this in your free consultation.

What about maintenance costs?

We default to 1% of home value per year, a common rule of thumb. Newer construction may run lower; older or larger homes can run higher.

Does this work for jumbo loans?

Yes, the math is identical. Just enter the actual price, down payment, and rate. We finance jumbo loans across California.

Numbers Look Right?

Take your inputs and get a real, written rate quote, usually within 1-2 business days.

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