Should You Rent or Buy?

It's not just about the mortgage payment. Between closing costs, maintenance, property taxes, and the opportunity cost of your down payment, the true cost of buying is deeper than the sticker price. Run the numbers to estimate which path might cost less.

15 yr
$
20%

$80,000 down

National avg: $300-$500 for a standard single-family home

$
$

National avg: $1,250 for local moves; $4,800+ for long-distance

$

Closing Costs

6.0%

1% lessBuying Wins

Buying saves you $4,968 over 15 years

Total Cost to Buy$364,564$2,025/mo effective
Total Cost to Rent$369,532$2,053/mo effective

That's $28/mo in savings

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Buying looks like the move

See how much house you can actually afford

A financial advisor can help you understand if you can afford the home you want without sacrificing the rest of your financial life.

NerdWallet Wealth Partners, LLC ("NWWP") is an SEC-registered investment adviser. Registration does not imply skill or training. All investments involve risk, including potential loss of principal.

How it breaks down

Buying — Upfront

Down payment$80,000
Closing costs$24,000
Moving + inspection + repairs$6,000

Buying — Ongoing

Total mortgage payments$501,758
Interest paid$181,758
Property tax + insurance$126,473
Maintenance + HOA + other$93,896
Utilities$22,350
Major repairs + upgrades$0

Buying — Exit

Home value at sale$623,187
Agent commission$31,159
Capital gains tax$33,478
Staging + prep$2,000
Net equity$556,550

Renting

Total rent paid$446,374
Renter's insurance$13,391
Investment portfolio value$200,233

Results are for illustrative purposes only and do not constitute financial advice. Calculations use simplified models and do not account for mortgage interest deductions, property tax deductions, opportunity cost nuances, or local market conditions. Interest is calculated monthly.