Rent vs. Buy Calculator
Should you buy or continue renting? Compare the true long-term costs of homeownership vs. renting in Hawaii, including equity growth, investment opportunity cost, and tax benefits.
This calculator compares the total cost of buying a home vs. renting over your chosen time horizon. It accounts for mortgage payments, property taxes, maintenance, home appreciation, rent increases, tax deductions, and the opportunity cost of investing your down payment in the stock market instead. All figures are estimates for educational purposes.
Scenario Details
Buying
$160,000 down
Annual home value growth rate
Annual % of home value
Annual % of home value
Renting
Financial Assumptions
For mortgage interest deduction (if itemizing)
Annual return if down payment was invested
How long you plan to stay
Over 10 Years
Renting is more cost-effective over this time horizon
Over 10 years, the total net cost of buying (accounting for equity) exceeds the net cost of renting (accounting for investment returns). Consider a longer time horizon or different market conditions.
Monthly Mortgage P&I
$4,045
Total Buy Cost
$621K
over 10 years
Total Rent Cost
$416K
over 10 years
Home Equity
$586K
at year 10
Investment Value
$1.0M
if down payment invested
Tax Savings
$85K
mortgage interest deduction
Cumulative Cost Over Time
Total out-of-pocket costs for buying vs. renting, year by year
- Buying Cost
- Renting Cost
Net Wealth Comparison
Home equity (buying) vs. investment portfolio (renting) over time
- Home Equity
- Investment Portfolio
Year-by-Year Breakdown
| Year | Buy Cost | Rent Cost | Home Value | Home Equity | Investment |
|---|---|---|---|---|---|
| 1 | $81K | $36K | $828K | $195K | $205K |
| 2 | $139K | $74K | $857K | $232K | $256K |
| 3 | $197K | $112K | $887K | $270K | $313K |
| 4 | $256K | $152K | $918K | $310K | $378K |
| 5 | $315K | $193K | $950K | $351K | $452K |
| 6 | $375K | $235K | $983K | $394K | $536K |
| 7 | $436K | $278K | $1.0M | $439K | $632K |
| 8 | $497K | $323K | $1.1M | $486K | $740K |
| 9 | $559K | $369K | $1.1M | $535K | $864K |
| 10 | $621K | $416K | $1.1M | $586K | $1.0M |
Disclaimer: This calculator provides estimates for educational purposes only and does not constitute financial advice. Actual costs will vary based on market conditions, specific property details, tax situations, and other factors. Home appreciation and investment returns are not guaranteed. Closing costs are estimated at 3% of home price. Contact a financial advisor and mortgage professional for personalized guidance.
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