: Critics argue its default assumptions can be overly pessimistic toward buying, specifically regarding how high home price growth must be to "win".
: The most overlooked factor. Calculators like Zillow's show that if you rent and invest your down payment, you could potentially out-earn a home's equity growth, especially in the first 3–5 years. rent or buy home calculator
Many experts note that calculators can "break" if you compare "apples to oranges"—for example, comparing the cost of a 2-bedroom apartment to a 3-bedroom single-family house. For an accurate result, you must use a Search Site like Zillow to find a specific home that is currently listed for both sale and for rent to use as your data source. : Critics argue its default assumptions can be
: A quick rule of thumb used by analysts: 15 or less : Generally favors buying. Many experts note that calculators can "break" if
: Accounts for opportunity cost (what you'd earn by investing your down payment), the 2017 mortgage interest deduction cap, and localized appreciation.
Rent-vs-buy calculators are essential for determining the "break-even point"—the exact year when the total cost of homeownership becomes less than the total cost of renting.
: Generally favors renting and investing the difference. Common Criticism of Calculators