Rent vs Buy Calculator
Compares renting against buying over the years you plan to stay — equity, appreciation, closing costs, maintenance, and the real tax picture, including whether itemizing would beat the standard deduction at all.
If You Rent
Historical average is 2–4% per year.
If You Buy
10.0% — Loan: $360,000
Typical range: 0.5–2% of home value per year.
Tax Profile
Used to find your marginal tax bracket (22% at this income). Tax savings are an estimate — not tax advice.
How Long Will You Stay?
Over 7 years
Renting could leave you with approximately $12,590 more in net worth.
Even after ~$132 in estimated tax savings for homeowners, renting and investing comes out ahead over 7 years.
Estimated Tax Benefit of Ownership
Year 1
$95
Annual avg
$19
Marginal rate
22%
Estimated federal deduction on mortgage interest + property tax (SALT capped at $10,000/yr) at your 22% marginal rate. Year-1 is highest because interest is front-loaded; savings decrease as the loan pays down. This is an educational estimate — not tax advice. Assumes you itemize and total deductions exceed the standard deduction.
Home Equity, Rent & Tax Savings Over Time
Home equity is gross (before selling costs). Tax Savings (dashed) shows cumulative estimated federal deduction benefit.
After 7 years — Net Wealth Comparison
Buying
Renting
Total Rent Paid
$202,289
Home Equity
$134,945
after selling costs
PITI vs Rent
$2,907
vs $2,200 rent/mo
This is a projection, not a prediction. Home values, investment returns, rent growth, and tax outcomes are uncertain. Tax savings assume itemized deductions exceed the standard deduction — consult a tax professional. Actual results will vary. Speak with a financial advisor before making a rent-vs-buy decision.
The short answer
Is it better to rent or buy in Portland?
It depends mostly on how long you stay. Buying carries large up-front costs, so a short stay usually favours renting even in a rising market. This calculator finds your break-even year. It also only counts mortgage interest as a tax saving where itemized deductions actually exceed the standard deduction — many buyers see no tax benefit at all.
Run your numbers with us
A calculator gives you an estimate. A conversation gives you the number you can actually plan around — David and Bri will walk you through it down to the decimal.