Mortgage Payment vs Rent vs Buy
Should you rent or buy? Compare the all-in monthly cost of ownership against your local rent.
A mortgage payment is just the principal + interest portion. The all-in cost of ownership includes property tax, homeowners insurance, PMI (if down payment < 20%), HOA, and maintenance (1–2% of home value annually). When weighing rent vs buy, compare your local market rent against that full ownership cost — not just the mortgage.
Key Differences
| Aspect | Mortgage Payment Calculator | Rent vs. Buy Calculator |
|---|---|---|
| Output | P&I monthly payment | Buy vs rent break-even |
| Includes property tax | No (basic) | Yes |
| Includes maintenance | No | Yes (1-2%/yr) |
| Includes opportunity cost | No | Yes (down payment) |
When to use Mortgage Payment Calculator
- You know exactly the loan structure (refinancing, comparing offers)
- The decision to buy is already made
When to use Rent vs. Buy Calculator
- Deciding whether to buy or keep renting
- Considering a move that changes housing strategy
- Comparing markets where ownership economics differ
Frequently Asked Questions
Why is my "all-in" monthly cost so much higher than P&I?
Property tax (1–3% of home value annually), insurance ($1,200–$2,500/yr), maintenance (1–2% of home value), and possibly PMI and HOA. On a $400k house, these add $800–$1,200/month.
When does buying beat renting?
Rule of thumb: when your stay > 5–7 years and the rent ratio (annual rent / home price) is > 5%. Below that, the closing costs and opportunity cost of the down payment make renting financially better.