Rental Assumptions Monthly rent? $ Annual rental insurance? $ Purchase Assumptions Home purchase price? $ Down payment? $ Annual property tax? $ Monthly HOA dues? $ Annual insurance? $ Loan term (years)? Interest rate? % Other Assumptions Evaluation timeframe? Annual rent increase? % Appreciation rate? % Marginal tax rate? % Pre-tax savings rate? % Annual inflation rate? % Printer-friendly version Cumulative Costs of Renting and Buying Rent Buy Chart Table Yearly Analysis Email Results First Name Last Name Email Address Phone Number Submit Depending on how fast prices and rents rise and how long you stay in your home, you may be better off renting rather than buying. Factors that are part of the equation are the difference in monthly rent versus mortgage payment, home value appreciation, annual rent increases, the interest rate you will pay on your loan, your marginal tax rate and the yield you might receive on savings. When looking at these factors, consider the present value of each option. The one with the lower present value will be the better financial choice.