Rent vs. buy calculator
Compare what you would spend renting with the true cost of owning in Austin, including taxes, equity and selling costs, over the years you stay.
Owning assumes 2.6% a year for taxes and insurance, 3% buying costs and 6% selling costs.
Over 7 years
Buying wins
- Total rent paid
- $220,679
- Net cost of owning
- $199,437
- Equity when you sell
- $126,279
- Difference
- $21,242
Estimate only, for illustration. Your actual rate, payment and costs depend on your credit, loan program, property and market conditions. Not an offer to lend.
Get my real numbersHow the rent vs. buy calculator works
The calculator adds up every dollar of rent you would pay over the years you plan to stay, with yearly rent increases. For owning, it adds your down payment, estimated buying costs, principal and interest, and taxes and insurance. Then it subtracts the equity you would walk away with when you sell, after estimated selling costs. The smaller number wins.
The inputs that matter most
- Years you plan to stay. Buying costs money up front and selling costs money on the way out, so short stays favor renting and longer stays favor buying.
- Home value growth. Nobody can promise appreciation. Try a low number, even zero, to see how sensitive your answer is.
- Rent increases. Rent tends to rise over time, while a fixed rate mortgage payment for principal and interest does not.
What the math leaves out
Owning brings maintenance and repairs, but also stability, the freedom to renovate and a forced savings effect as you pay down principal. Renting brings flexibility and fewer surprises. Use the result as a starting point for a conversation, not a verdict.
Common questions
Is it better to rent or buy in Austin?
It depends mostly on how long you plan to stay and what you would pay in rent versus the full cost of owning, including Texas property taxes. The longer you stay, the more often buying comes out ahead. Run your own numbers above.
How long do I need to stay for buying to make sense?
Often somewhere around five years or more, because buying and selling costs take time to recover. The calculator shows the answer for your exact inputs, so change the years to find your own break-even.
Does this include maintenance?
Maintenance is not a separate line, so leave some room in your budget for it. A common planning habit is to set aside a small percentage of the home's value each year for upkeep and repairs.
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