Buy vs rent tool
True monthly cost of owning vs renting
Mortgage payments are only part of owning. This tool separates what is gone forever (interest, tax, maintenance, insurance, fees, lost investment return) from what builds equity, so you can compare the true cost of owning with rent in buy vs rent.
Cash cost versus true cost
The principal part of your payment is not a cost: it becomes equity. Interest, property tax, maintenance, insurance and fees are costs. Add the return your down payment could have earned elsewhere (the opportunity cost) and subtract expected price growth to see a net annual cost.
Questions people ask
Is principal a cost of owning?
No, it increases your equity. But it is still cash out of pocket, which is why it matters for budgeting.
Why include opportunity cost?
Money used for a down payment cannot earn a return elsewhere. Counting that lost return makes the comparison with rent fair.
Should appreciation reduce the cost of owning?
It can, but it is uncertain. The tool shows costs with and without appreciation.
Educational estimates based on your inputs; not advice. See the methodology and assumptions.