ZION FINANCE

Rent vs Buy Calculator

Buying is not automatically better than renting. The fair comparison is with a renter who invests the money a buyer puts into the home.

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How this calculator works

The buyer pays the down payment and purchase costs, then the mortgage and maintenance. Their wealth is the home value minus selling costs and the remaining loan.
The renter invests the same upfront cash and, each month, invests whatever the buyer pays above rent (or the buyer invests the difference if rent is higher).
The break-even year is the first year the buyer's net worth is at least the renter's.

Why can the cost of owning be zero?

If the home rises in value faster than all the costs of owning, the net cost is shown as zero rather than a negative number.

Split a mortgage into prime, fixed and CPI-linked tracks and see payments, total cost and Bank of Israel limits.

The price range your income and equity support under Israeli or US lending rules.

How long until you have the equity and purchase costs for a home.