Costs & Math
The numbers behind rent vs buy: unrecoverable costs, break-even points, opportunity cost and the 5% rule.
How to Calculate Rent vs Buy: A Step-by-Step Method With FormulasHow to calculate rent vs buy step by step: the mortgage formula, future value, net worth comparison and a rent vs buy spreadsheet layout to copy into Excel.The Best Rent vs Buy Calculators Compared: Which One Should You Use?Best rent vs buy calculator compared: The New York Times, NerdWallet, Zillow, Fidelity, SmartAsset and RentBuyAtlas. What each models, plus a checklist.The Opportunity Cost of a Down Payment, Explained With Real NumbersThe opportunity cost of down payment cash is what it would earn invested. Worked examples for India, Brazil, Switzerland and the US, and when 20% down pays.Price-to-Rent Ratio: How to Calculate It and What It Tells YouThe price to rent ratio compares home prices with annual rent. Learn the formula, how to read it, its link to gross rental yield, and ratios by market.The Cost of Owning a Home vs Renting: Every Hidden Cost, Country by CountryThe real cost of owning a home vs renting: transaction costs by country, maintenance rules of thumb, insurance, service charges and special assessments.When Does It Make Sense to Rent vs Buy? Finding Your Break-Even PointWhen does it make sense to rent vs buy? Learn how the break-even year and break-even rent work, see results for 12 markets, and find how long you must stay.The 5% Rule Rent vs Buy: Ben Felix's Shortcut, Explained and AdjustedThe 5% rule rent vs buy shortcut explained: Ben Felix's 1% + 1% + 3% formula, a worked example, and a per-market table showing how to adjust it locally.Is It Cheaper to Rent or Buy a House? The Unrecoverable Cost MethodIs it cheaper to rent or buy a house? Compare unrecoverable costs in month one and year ten, with worked examples from the US, UK, Canada and Germany.