Florida Homes & Loans | Buy vs. Rent Calculator

Rent vs. Buy: What Are You Really Paying For?

Renting gives you a place to live. Buying may help you build ownership. Use this simple calculator to compare what you pay in rent each month versus what it may cost to buy a home, and see how owning can build equity over time.

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Rent pays for a place to live.

When you rent, your monthly payment goes to the landlord. You do not own the home, and you usually do not get that money back.

Buying can help you build equity.

When you own a home, part of your mortgage payment may pay down your loan. As the loan balance goes down, your ownership in the home can go up.

Home values may go up over time.

If the home goes up in value, that may add to your equity. Later, you may be able to use that equity when needed, but only if you qualify.

Plain English Terms

Equity means the part of the home you own. If your home is worth $350,000 and you owe $300,000, you have about $50,000 in equity before selling costs.

Principal means the loan balance. When part of your payment goes toward principal, your loan balance goes down.

Appreciation means the home may go up in value over time. This is not guaranteed, but it can help build wealth if values rise.

Accessing equity means you may be able to use some of your equity later through selling, refinancing, or a home equity loan/line of credit, if you qualify.

Buy vs. Rent Calculator

Enter your rent and a possible home price. The calculator will show the estimated monthly cost to rent versus buy, and how much equity you may build over time.

1. What Are You Paying in Rent?

2. What Would Buying Look Like?

This is the amount you put down. Some programs allow low or no down payment if you qualify.
Your lender can help estimate this.
This is money to plan for repairs and upkeep.
Monthly Rent Payment — Rent plus renters insurance.
Estimated Monthly Home Payment — Mortgage, taxes, insurance, HOA, mortgage insurance, and repairs.
Monthly Difference — Shows which option costs more each month.
Estimated Ownership Built — Down payment, loan paydown, and possible value growth.
Total Rent Paid — Money paid to rent over the selected time.
Loan Balance Paid Down — This is the part of your payment that helps you own more of the home.
Possible Home Value Increase — Estimated increase in the home's value.
Equity After Selling Costs — What may be left after estimated costs if you sold later.

Simple Rent vs. Buy Snapshot

Total Rent Paid
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Total Cost to Own
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Estimated Ownership Built
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Equity After Selling Costs
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Simple idea: Rent is not always bad, and buying is not always the right move for everyone. The big difference is that owning may help you build equity instead of only making monthly payments.

Calculator disclaimer: This calculator is for educational purposes only. Results are estimates and do not constitute a loan approval, commitment to lend, loan estimate, interest rate quote, financial advice, tax advice, or legal advice. Actual eligibility, rates, terms, down payment, mortgage insurance, taxes, homeowners insurance, HOA dues, closing costs, escrows, and monthly payments vary based on loan program, credit profile, income, property type, occupancy, appraised value, underwriting guidelines, and market conditions.

Buying is not automatically better for every person. Renting may make more sense depending on your job, savings, credit, timeline, repair comfort, market conditions, and personal goals. Home values can go up or down. Equity is not guaranteed and can only be accessed later if you qualify and enough equity is available.

Real estate services are offered through Florida Homes & Loans Inc. Mortgage financing is offered through FHL Mortgages. NMLS #2295908. Equal Housing Opportunity.