Rent vs Buy Calculator v6.2.1

Designed for: Young professionals (22-29) building wealth and financial literacy

What This Tool Does Differently

Unlike generic online calculators that just crunch numbers, this tool is a decision engine that:

• Reflects your reality: Factors in your actual investment discipline, not a perfect investor's behavior
• Reveals the true cost: Shows what the wrong decision would cost you—in real dollars
• Drives action: Provides a concrete action plan with specific next steps, not generic advice
• Confronts your psychology: Addresses the behavioral gaps that cause most financial plans to fail

What's New in v6.2.1

• 4-step guided wizard for easier data entry
• Behavioral realism: Select your investment discipline level
• User-selectable investment return rates (5%, 7%, 10%)
• Lifestyle factors comparison (pets, renovations, stability)
• Security deposit vs down payment comparison
• Clear excess savings visibility
• Rent increase volatility warning

How It Works

This calculator compares the total cost of renting versus buying over your specified timeframe. It includes all major costs like maintenance, taxes, insurance, and opportunity cost of your down payment. The analysis shows break-even points and builds complete financial projections.

Key Assumptions

• Investment returns: User-selectable (5%, 7%, or 10% annual)
• Behavioral discipline factor adjusts projected investment growth
• Home maintenance costs at 1% of home value annually
• Property appreciation rates based on historical averages

Important Limitations

• Results are estimates for educational purposes only
• Actual outcomes may vary based on market conditions
• Individual circumstances may require different strategies
• Tax implications vary by location and personal situation

Disclaimer: This tool provides educational estimates only. Consult a qualified financial advisor for personalized advice.