Rent vs. Buy Cost Comparison Tool
Common Assumptions
Buying a Home Details
Renting a Property Details
Rent vs. Buy Comparison Analysis
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'; // Potentially navigate back to the first invalid tab found if(!commonValid) this.navigateToTab('RvbCommonTab', 'commonTabButton'); else if(!buyingValid) this.navigateToTab('RvbBuyingTab', 'buyingTabButton'); return; } // --- Gather all inputs --- const years = parseInt(this.elements.comparisonPeriodYears.value); const inflation = parseFloat(this.elements.annualInflationRate.value) / 100; const investmentReturn = parseFloat(this.elements.investmentReturnRate.value) / 100; const homePrice = parseFloat(this.elements.homePrice.value); const downPayment = parseFloat(this.elements.downPaymentAmount.value); const mortgageRate = parseFloat(this.elements.mortgageInterestRate.value) / 100; // Annual const loanTerm = parseInt(this.elements.loanTermYears.value); const closingCostsP = parseFloat(this.elements.closingCostsPercent.value) / 100; const propertyTaxRateP = parseFloat(this.elements.annualPropertyTaxRate.value) / 100; let annualHomeInsurance = parseFloat(this.elements.annualHomeInsurance.value); const maintenanceP = parseFloat(this.elements.annualMaintenanceCostPercent.value) / 100; let monthlyHOA = parseFloat(this.elements.monthlyHOAFees.value) || 0; const appreciationRate = parseFloat(this.elements.homeAppreciationRate.value) / 100; const sellingCostsP = parseFloat(this.elements.sellingCostsPercent.value) / 100; let monthlyRent = parseFloat(this.elements.monthlyRent.value); let annualRentersIns = parseFloat(this.elements.rentersInsurance.value) || 0; const securityDeposit = parseFloat(this.elements.securityDeposit.value) || 0; // --- Buying Calculations --- const loanAmount = homePrice - downPayment; const upfrontBuyingCost = downPayment + (homePrice * closingCostsP); const monthlyPAndI = this._calculateEMI(loanAmount, mortgageRate * 100, loanTerm); let totalMortgagePayments = 0; let totalPropertyTaxes = 0; let totalHomeInsurance = 0; let totalMaintenance = 0; let totalHOA = 0; let currentHomeValue = homePrice; let remainingLoanBalance = loanAmount; let buyingYearlyCosts = []; for (let i = 1; i <= years; i++) { let yearlyPAndI = 0; let principalPaidThisYear = 0; if (remainingLoanBalance > 0) { for (let m = 1; m <= 12; m++) { if (remainingLoanBalance <=0) break; const interestThisMonth = remainingLoanBalance * (mortgageRate / 12); let principalThisMonth = monthlyPAndI - interestThisMonth; if (remainingLoanBalance < principalThisMonth) { // Final payment adjustment principalThisMonth = remainingLoanBalance; } yearlyPAndI += (interestThisMonth + principalThisMonth); principalPaidThisYear += principalThisMonth; remainingLoanBalance -= principalThisMonth; if (remainingLoanBalance < 0.01) remainingLoanBalance = 0; } } totalMortgagePayments += yearlyPAndI; const propertyTaxForYear = currentHomeValue * propertyTaxRateP; totalPropertyTaxes += propertyTaxForYear; const homeInsuranceForYear = annualHomeInsurance * Math.pow(1 + inflation, i - 1); totalHomeInsurance += homeInsuranceForYear; const maintenanceForYear = currentHomeValue * maintenanceP; // Maintenance often % of current value totalMaintenance += maintenanceForYear; const hoaForYear = (monthlyHOA * 12) * Math.pow(1 + inflation, i - 1); totalHOA += hoaForYear; buyingYearlyCosts.push(yearlyPAndI + propertyTaxForYear + homeInsuranceForYear + maintenanceForYear + hoaForYear); currentHomeValue *= (1 + appreciationRate); // Appreciate for next year } const futureHomeValue = homePrice * Math.pow(1 + appreciationRate, years); const costToSell = futureHomeValue * sellingCostsP; const homeEquity = futureHomeValue - remainingLoanBalance; const netProceedsFromSale = homeEquity - costToSell; const totalCashOutflowsBuying = upfrontBuyingCost + totalMortgagePayments + totalPropertyTaxes + totalHomeInsurance + totalMaintenance + totalHOA; const netCostOfBuying = totalCashOutflowsBuying - netProceedsFromSale; // --- Renting Calculations --- let totalRentPaid = 0; let totalRentersInsurance = 0; let rentingYearlyCosts = []; let currentAnnualRent = monthlyRent * 12; let currentAnnualRentersIns = annualRentersIns; for (let i = 1; i <= years; i++) { totalRentPaid += currentAnnualRent; totalRentersInsurance += currentAnnualRentersIns; rentingYearlyCosts.push(currentAnnualRent + currentAnnualRentersIns); currentAnnualRent *= (1 + inflation); // Inflate for next year currentAnnualRentersIns *= (1 + inflation); // Inflate for next year } const upfrontRentingCost = securityDeposit; // Assume returned at face value, so its cost is opportunity cost. const investmentPrincipalRenter = upfrontBuyingCost - upfrontRentingCost; // Amount renter has "extra" upfront let futureValueOfInvestmentRenter = 0; if (investmentPrincipalRenter > 0) { futureValueOfInvestmentRenter = investmentPrincipalRenter * Math.pow(1 + investmentReturn, years); } // Consider monthly savings investment if renting is cheaper monthly initially. This is more complex. // Simplified: focus on upfront difference investment. const totalCashOutflowsRenting = upfrontRentingCost + totalRentPaid + totalRentersInsurance; // Net cost = outflows - (what you get back + what you earned by investing the difference) const netCostOfRenting = totalCashOutflowsRenting - (securityDeposit + futureValueOfInvestmentRenter); this.calculatedData = { years, inflation, investmentReturn, // Buying homePrice, downPayment, loanAmount, mortgageRate, loanTerm, monthlyPAndI, upfrontBuyingCost, totalMortgagePayments, totalPropertyTaxes, totalHomeInsurance, totalMaintenance, totalHOA, futureHomeValue, remainingLoanBalance, costToSell, homeEquity, netProceedsFromSale, totalCashOutflowsBuying, netCostOfBuying, // Renting monthlyRent, annualRentersIns, securityDeposit, totalRentPaid, totalRentersInsurance, investmentPrincipalRenter, futureValueOfInvestmentRenter, totalCashOutflowsRenting, netCostOfRenting, // Store input values for PDF inputs: { ...this.elements } // Store all element values (or selected ones) }; // Clean up input values for PDF by taking .value for(const key in this.calculatedData.inputs) { if(this.calculatedData.inputs[key] && typeof this.calculatedData.inputs[key].value !== 'undefined') { this.calculatedData.inputs[key] = this.calculatedData.inputs[key].value; } } this.renderAnalysis(); this.navigateToTab('RvbAnalysisTab', 'rvbAnalysisTabButton'); }, renderAnalysis: function() { const data = this.calculatedData; const fNum = (num, dec = 0) => (typeof num !== 'number' || isNaN(num)) ? 'N/A' : num.toLocaleString(undefined, {minimumFractionDigits:dec, maximumFractionDigits:dec}); let outputHTML = `Comparison Over ${data.years} Years
`; outputHTML += `Buying a Home
`; outputHTML += `Upfront Costs (Down Payment + Closing): $${fNum(data.upfrontBuyingCost)}
`; outputHTML += `Total Mortgage Payments (P&I): $${fNum(data.totalMortgagePayments)}
`; outputHTML += `Total Property Taxes: $${fNum(data.totalPropertyTaxes)}
`; outputHTML += `Total Home Insurance: $${fNum(data.totalHomeInsurance)}
`; outputHTML += `Total Maintenance: $${fNum(data.totalMaintenance)}
`; outputHTML += `Total HOA Fees: $${fNum(data.totalHOA)}
`; outputHTML += `Total Outflows for Buying: $${fNum(data.totalCashOutflowsBuying)}
`; outputHTML += ``; outputHTML += `
Projected Home Value (after ${data.years} years): $${fNum(data.futureHomeValue)}
`; outputHTML += `Estimated Selling Costs: $${fNum(data.costToSell)}
`; outputHTML += `Remaining Loan Balance: $${fNum(data.remainingLoanBalance)}
`; outputHTML += `Net Proceeds from Sale (Equity - Selling Costs): $${fNum(data.netProceedsFromSale)}
`; outputHTML += `Net Cost of Buying (Outflows - Net Sale Proceeds): $${fNum(data.netCostOfBuying)}
`; outputHTML += `Renting a Property
`; outputHTML += `Upfront Costs (Security Deposit): $${fNum(data.securityDeposit)}
`; outputHTML += `Total Rent Paid: $${fNum(data.totalRentPaid)}
`; outputHTML += `Total Renter's Insurance: $${fNum(data.totalRentersInsurance)}
`; outputHTML += `Total Outflows for Renting: $${fNum(data.totalCashOutflowsRenting - data.securityDeposit)} (excluding deposit returned)
`; // Exclude deposit as it's returned outputHTML += ``; if (data.investmentPrincipalRenter > 0) { outputHTML += `
Investment Growth (from investing upfront buying cost difference of $${fNum(data.investmentPrincipalRenter)}): $${fNum(data.futureValueOfInvestmentRenter - data.investmentPrincipalRenter)} (Total Value: $${fNum(data.futureValueOfInvestmentRenter)})
`; } else { outputHTML += `No significant upfront cost difference to invest.
`; } outputHTML += `Security Deposit Returned: $${fNum(data.securityDeposit)}
`; outputHTML += `Net Cost of Renting (Outflows - Investment Gains - Deposit Returned): $${fNum(data.netCostOfRenting)}
`; outputHTML += ``; outputHTML += `
Buying is estimated to be $${fNum(Math.abs(data.netCostOfBuying - data.netCostOfRenting))} cheaper than renting over ${data.years} years.
`; } else if (data.netCostOfRenting < data.netCostOfBuying) { outputHTML += `Renting is estimated to be $${fNum(Math.abs(data.netCostOfBuying - data.netCostOfRenting))} cheaper than buying over ${data.years} years.
`; } else { outputHTML += `Buying and renting have a similar estimated net cost over ${data.years} years.
`; } outputHTML += `