Buy vs Rent Calculator
How Do I Calculate My Buy VS Rent?
Formula:
Buying Advantage = (Home Value Appreciation + Principal Paid + Tax Benefits) − (Rent Paid + Ownership Costs)
- Home Value Appreciation: The increase in your home’s value over time.
- Principal Paid: The amount of your mortgage you’ve paid off.
- Tax Benefits: Savings from mortgage interest or property tax deductions.
- Rent Paid: Total rent over the same time period.
- Ownership Costs: Property taxes, insurance, and maintenance.
Example:
If you rent for $2,500/month for 5 years, you’ll spend $150,000 with no return.
If you buy a $400,000 home with 20% down and a 6.5% interest rate, you’ll pay about $2,020/month in principal and interest. After 5 years, you’ll have paid down about $38,000 in principal, and if your home appreciates 3% per year, you could gain roughly $63,000 in equity.
Your total “buying advantage” = $63,000 + $38,000 = $101,000 compared to renting.
What Is a Buy vs. Rent Calculator?
A Buy vs. Rent Calculator helps you compare the total costs and benefits of owning a home versus continuing to rent.
It goes beyond just the monthly payment — showing how equity, appreciation, and tax benefits can make owning a home more valuable over time.
At Zarro Mortgage Group, we built this calculator for Treasure Coast homebuyers who want to make smart, data-driven decisions before buying — not emotional ones.
Why It’s Important to Compare Buying and Renting
Many people assume renting is “cheaper” — but over time, rent payments build no equity.
Buying a home allows your payments to work for you, building ownership, appreciation, and potential tax advantages.
Our calculator breaks it all down so you can see how long it takes before buying becomes the smarter move financially.
For example:
• Homeowners in Martin County typically break even in 3–5 years depending on rate and appreciation.
• Renters in St. Lucie County often pay more monthly than a comparable mortgage — without any long-term return.
Frequently Asked Questions About Buy VS Rents ?
How does the Zarro Mortgage Group Buy vs. Rent Calculator work?
Our calculator compares your total rent payments to the long-term value of homeownership — including mortgage paydown, appreciation, and tax benefits.
It’s designed for Treasure Coast residents deciding whether now’s the right time to stop renting and start building equity.
What are the main factors that affect whether buying or renting is better?
The key factors are:
• Monthly rent vs. mortgage payment
• Expected home appreciation rate
• Loan interest rate and term
• Property taxes and insurance
• How long you plan to stay in the home
Our calculator blends all these factors to help you find your break-even point — where buying becomes more profitable than renting.
How long do I need to stay in a home before buying makes sense?
Typically, it takes 3–5 years to “break even” on a home purchase, depending on appreciation, interest rates, and closing costs.
In fast-growing areas like Martin County and St. Lucie County, appreciation can accelerate that timeline — meaning buying sooner often pays off faster.
What costs should I consider when buying instead of renting?
When buying, you’ll need to factor in:
• Down payment and closing costs
• Property taxes and insurance
• HOA dues (if applicable)
• Maintenance and repairs
While these add up, they’re offset by equity growth and tax benefits, which renters don’t receive.
Does buying a home really build wealth faster than renting?
Yes — especially over the long term.
Homeowners build equity as property values rise and loan balances fall. Renters, on the other hand, see their payments go entirely to the landlord.
On the Treasure Coast, where housing values have appreciated consistently, homeownership remains one of the strongest paths to building generational wealth.
How do mortgage rates affect the buy vs. rent decision?
A lower mortgage rate means smaller monthly payments and faster equity growth.
Even a 0.5% rate difference can shift your total cost by thousands.
Zarro Mortgage Group helps Treasure Coast buyers lock in competitive rates that make buying more affordable than renting in most cases.
Where can I learn more about homeownership benefits?
You can explore homeownership programs through the U.S. Department of Housing and Urban Development (HUD).
For personalized advice, the Zarro Mortgage Group team can help you analyze your financial goals and see how buying compares to renting across the Treasure Coast.
Buy your next home with a local lender you can trust
Skip the big banks and online gimmicks. With Zarro Mortgage Group, you get real people, real answers, and real results — right here on the Treasure Coast.
We’ll help you get pre-qualified quickly, so you can shop for your dream home with confidence and clarity.