Rent vs buy

The price of the home you are thinking of buying.

The part of the price you pay in cash up front, as a percentage. 20% of a $250,000 home is $50,000. Putting down less than 20% usually adds a monthly mortgage insurance charge.

The yearly cost of the loan, as a percentage of what you owe. Use a current quote from a lender, because rates change often.

How many years you have to pay the loan back. A 30-year loan has smaller monthly payments; a 15-year loan has bigger payments but costs far less interest overall.

Yearly property tax as a percentage of the home's value. It varies a lot by county, often between 1% and 2%. Use your local rate.

What you pay each year to insure the property, in dollars. Get a quote from an insurance company.

Yearly upkeep and repairs as a percentage of the home's value. 1% is a common planning figure.

A monthly fee some communities charge for shared upkeep such as landscaping, roofs or amenities. Enter 0 if there is none.

Fees you pay when you buy (lender, title company, recording), as a percentage of the purchase price. Often around 2% to 5%.

What it costs to sell, as a percentage of the sale price: agent commission, transfer tax and closing fees. Often around 6% to 8%.

How much you expect the home's value to rise each year. It varies by place and time, 2% to 4% is a common cautious guess, and values can also fall.

What you would pay each month to rent a comparable place instead of buying.

How much you expect rent to go up each year. At 3% a year, $2,200 of rent becomes about $2,266 next year.

The monthly cost of renter's insurance, which covers your belongings.

What the renter earns each year by investing the down payment and the monthly savings. It is a guess, so try a low number and a high one.

How long you expect to live in the home. Buying usually needs several years to pay back the upfront costs.