Rent vs Buy: $300K Home, 20% Down, 6.5% vs $1,800 Rent
Compare buying a $300,000 home at 6.5% with 20% down against paying $1,800/month in rent to find the break-even point.
How to use this tool
- Enter the home price and your planned down-payment percentage.
- Enter the mortgage rate and term.
- Add your other monthly ownership costs (tax, insurance, HOA, upkeep).
- Enter the monthly rent for a comparable place.
- Set how many years you plan to stay and read which option costs less.
Analyze whether buying a $300,000 home or renting at $1,800/month makes more sense in your market.
Frequently asked questions
- Is it cheaper to rent or buy?
- It depends mostly on how long you stay. Buying has high upfront costs, so renting is often cheaper over a few years, while buying tends to win over longer horizons once equity and appreciation are counted. This tool compares straight cash outlay; add equity and appreciation for a full picture.
- What costs does buying include here?
- The down payment plus the monthly mortgage principal and interest and your other ownership costs (property tax, insurance, HOA, and maintenance) over your holding period. It does not subtract the equity or appreciation you recover at sale.
- Why might buying actually be better than this shows?
- This is a cash-only comparison. When you sell, you recover your equity and any appreciation, which this baseline ignores. Tax deductions on mortgage interest can also lower the true cost of buying.