The Wellington Journal

Our Rent vs. Buy Calculator is designed to help you determine whether renting or buying a home makes more financial sense based on your unique situation.

How to Use the Rent vs. Buy Calculator

Follow the steps below to get an accurate estimate.

🔹 Step 1: Enter Your Current Rental Costs

1️⃣ Monthly Rent ($): Enter the amount you currently pay for rent each month.

🔹 Step 2: Enter Home Purchase Details

2️⃣ Home Price ($): Input the estimated cost of the home you’re considering buying.
3️⃣ Down Payment (%): Enter the percentage of the home price you plan to pay upfront. A standard down payment is 20%, but it can vary.
4️⃣ Loan Term (Years): Choose the length of your mortgage (e.g., 15 or 30 years).
5️⃣ Mortgage Interest Rate (%): Enter the estimated interest rate for your mortgage.

🔹 Step 3: Enter Additional Homeowner Expenses

6️⃣ Property Tax Rate (%): Enter the estimated property tax percentage in your area (e.g., 1.2% is common).
7️⃣ Home Insurance ($/Year): Input the yearly cost of homeowners insurance.
8️⃣ HOA Fees ($/Month): If the home is in a community with a Homeowners Association (HOA), enter the monthly fee.

🔹 Step 4: Click “Calculate”

Once all the fields are filled in, click the “Calculate” button. The tool will process your inputs and display:

✔ Monthly Cost of Buying – Includes mortgage, taxes, insurance, and HOA fees.
✔ Monthly Cost of Renting – Based on your current rent.
✔ Estimated Break-even Point – How many years it will take before buying becomes cheaper than renting.
✔ Recommendation – A simple interpretation of your results:

• If break-even is under 5 years → Buying may be a better long-term choice.
• If break-even is over 10 years → Renting may be the smarter option.
• If break-even is between 5-10 years → Either option could work depending on your situation.

📌 What This Means for You

• If the monthly cost of buying is lower than renting, homeownership could be a better financial decision.
• If the break-even point is far into the future, renting may be more flexible and cost-effective.
• This tool helps provide a data-driven starting point—consider other factors like job stability, personal savings, and future plans.

⚡ Ready to find out what makes the most sense for you? Try the calculator now and make an informed decision! 🚀