Rent vs. buy calculator.

Rent vs. buy — the real math

Renting vs. buying is one of the most personal financial decisions — it depends on how long you plan to stay, your financial situation, and the local market dynamics.

Factors favoring buying

• Home values appreciate over time — Colorado appreciated ~6% annually over the past decade; Florida's coastal markets have averaged 7–9% in recent years
• Principal paydown builds equity every month
• Fixed-rate mortgage locks in your payment — rent increases year over year
• Tax deductions on mortgage interest and property taxes (consult a tax advisor)
• Freedom to renovate and customize

Factors favoring renting

• No maintenance or repair costs
• Flexibility to move without selling
• Down payment and closing costs remain invested elsewhere
• Makes sense in very high-cost markets where P&I far exceeds rent equivalent

In most Colorado markets at current prices and rates, buyers who plan to stay 4+ years typically come out ahead of renters on a total cost basis. In Florida resort markets (Naples, Destin, Keys), the buy advantage is often faster given strong appreciation.

This calculator provides an estimate. Tax implications, actual appreciation, and maintenance costs vary significantly. Consult a financial advisor for personalized guidance.

Related: Mortgage payment calculator · Get pre-approved · First-time homebuyer Colorado