What this calculator helps you do
Model the financial difference between renting and buying over a selected holding period. The calculation runs entirely in your browser; SENNA Finance does not receive the values entered into this tool.
Worked example
Using the default example—home price of $350,000, down payment of $70,000, mortgage rate of 6.5%, mortgage term of 30 years, current monthly rent of $1,800—the calculator returns estimated advantage of buying of $-69,638.97; estimated home value: $472,273.74; remaining mortgage: $237,373.15. Change the assumptions to match your own case rather than relying on the example.
Formula and calculation basis
Inputs are converted to the periodic units required by the formula. Results are calculated with full JavaScript numeric precision and rounded only for display.
How to interpret the result
The output is highly sensitive to home appreciation, rent growth, maintenance, investment return, and transaction costs. Test conservative and optimistic scenarios rather than relying on one result.
Common mistakes to avoid
- Assuming home prices or investment returns grow at a guaranteed rate.
- Leaving buying and selling transaction costs out of the decision.
- Ignoring flexibility, maintenance effort, and non-financial preferences.
Limits and assumptions
This simplified model does not include every tax benefit, transaction cost, vacancy, renovation, or local rule.
Outputs are estimates, not contractual quotations, regulated disclosures, tax advice, investment advice, or a substitute for professional review.
Frequently asked questions
Does a positive result mean I should buy?
No. It means buying has the modeled financial advantage under the entered assumptions; personal and market factors still matter.
Why does the time horizon matter?
Buying often has upfront costs that require time to recover.
Are tax deductions included?
No. Tax treatment is jurisdiction-specific and is excluded from this global model.
Sources and reference context
External references provide educational context and do not imply endorsement of SENNA Finance.