Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with over 10 years of experience in mortgage and rent-vs-buy modelling.
David Chen is a Certified Financial Analyst with over 10 years of experience in mortgage and rent-vs-buy modelling.
Use this free mortgage calculator vs rent to compare monthly costs, total out-of-pocket spend, and break-even equity after choosing to buy instead of rent.
Mortgage Calculator vs Rent
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Rent vs Buy Formula
Monthly P&I: M = P × [ r(1+r)^n ] / [ (1+r)^n – 1 ]
Total Rent: Monthly Rent × n
Equity after n months: (Home Appreciation – Remaining Loan) – Closing Costs
Formula Sources: Investopedia | NAR
Variables
- P: Loan amount after down payment.
- r: Monthly interest rate (annual rate ÷ 12).
- n: Total monthly periods (years × 12).
- Monthly Rent: Comparable market rent for similar property.