Purchasing Renting

Home Price: $399,900 Monthly Rent: $1,495

Down Payment: $80,000 Initial Investment: $80,000
Interest Rate: 5.750% Inflation: 3.0%
Loan Term: 30 Note: Inflation applies to Rent as well as
Property Tax Rate: 1.15% Utilities & Insurance for Purchasing and
Maintenance Cost: 1.0% Renting, and Maintenance.
Utilities (monthly): Utilities (monthly):
Home Appreciation: 1.0% Investment Return: 5.0%
Annual Insurance: $2,000 Annual Insurance: $250
Annual HOA Dues: $0
Standard Deduction: $10,700
If Married Enter "1": 1
Tax Bracket: 25%
Excise Tax Rate: 1.78%
Sale Fees: 6.0%

Renting
Year Rent Insurance Utilities Month Cost Saved/mo. Cum. Cost Savings Invested Interest Earned Tax on Int. Total $ Invest. Year Payment
1 ($17,940) ($250) $0 ($1,516) $980 ($19,337) $11,764 $4,588 ($1,147) $95,205 1 ($1,867)
2 ($18,478) ($258) $0 ($1,561) $955 ($39,406) $11,459 $5,333 ($1,333) $110,663 2 ($1,867)
3 ($19,033) ($265) $0 ($1,608) $935 ($60,227) $11,217 $6,094 ($1,524) $126,451 3 ($1,867)
4 ($19,604) ($273) $0 ($1,656) $914 ($81,822) $10,970 $6,871 ($1,718) $142,574 4 ($1,867)
5 ($20,192) ($281) $0 ($1,706) $893 ($104,211) $10,717 $7,665 ($1,916) $159,040 5 ($1,867)
6 ($20,797) ($290) $0 ($1,757) $874 ($127,417) $10,493 $8,477 ($2,119) $175,890 6 ($1,867)
7 ($21,421) ($299) $0 ($1,810) $855 ($151,464) $10,264 $9,308 ($2,327) $193,135 7 ($1,867)
8 ($22,064) ($307) $0 ($1,864) $836 ($176,375) $10,029 $10,158 ($2,540) $210,782 8 ($1,867)
9 ($22,726) ($317) $0 ($1,920) $816 ($202,175) $9,788 $11,029 ($2,757) $228,841 9 ($1,867)
10 ($23,408) ($326) $0 ($1,978) $795 ($228,888) $9,542 $11,919 ($2,980) $247,323 10 ($1,867)
11 ($24,110) ($336) $0 ($2,037) $774 ($256,542) $9,290 $12,831 ($3,208) $266,236 11 ($1,867)
12 ($24,833) ($346) $0 ($2,098) $753 ($285,162) $9,033 $13,763 ($3,441) $285,591 12 ($1,867)
13 ($25,578) ($356) $0 ($2,161) $731 ($314,776) $8,770 $14,718 ($3,680) $305,399 13 ($1,867)
14 ($26,345) ($367) $0 ($2,226) $708 ($345,412) $8,501 $15,695 ($3,924) $325,672 14 ($1,867)
15 ($27,136) ($378) $0 ($2,293) $686 ($377,100) $8,227 $16,695 ($4,174) $346,419 15 ($1,867)
16 ($27,950) ($389) $0 ($2,362) $662 ($409,869) $7,947 $17,718 ($4,430) $367,655 16 ($1,867)
17 ($28,788) ($401) $0 ($2,432) $638 ($443,750) $7,661 $18,766 ($4,691) $389,391 17 ($1,867)
18 ($29,652) ($413) $0 ($2,505) $614 ($478,775) $7,370 $19,838 ($4,960) $411,639 18 ($1,867)
19 ($30,542) ($426) $0 ($2,581) $578 ($514,974) $6,934 $20,929 ($5,232) $434,270 19 ($1,867)
20 ($31,458) ($438) $0 ($2,658) $530 ($552,379) $6,364 $22,032 ($5,508) $457,158 20 ($1,867)
21 ($32,402) ($452) $0 ($2,738) $481 ($591,018) $5,776 $23,147 ($5,787) $480,295 21 ($1,867)
22 ($33,374) ($465) $0 ($2,820) $431 ($630,925) $5,170 $24,273 ($6,068) $503,669 22 ($1,867)
23 ($34,375) ($479) $0 ($2,904) $379 ($672,132) $4,544 $25,411 ($6,353) $527,271 23 ($1,867)
24 ($35,406) ($493) $0 ($2,992) $325 ($714,671) $3,898 $26,558 ($6,640) $551,088 24 ($1,867)
25 ($36,468) ($508) $0 ($3,081) $269 ($758,577) $3,232 $27,716 ($6,929) $575,107 25 ($1,867)
26 ($37,562) ($523) $0 ($3,174) $212 ($803,883) $2,545 $28,883 ($7,221) $599,313 26 ($1,867)
27 ($38,689) ($539) $0 ($3,269) $153 ($850,626) $1,835 $30,057 ($7,514) $623,692 27 ($1,867)
28 ($39,850) ($555) $0 ($3,367) $92 ($898,841) $1,104 $31,240 ($7,810) $648,226 28 ($1,867)
29 ($41,045) ($572) $0 ($3,468) $29 ($948,566) $349 $32,429 ($8,107) $672,897 29 ($1,867)
30 ($42,277) ($589) $0 ($3,572) ($36) ($999,837) ($429) $33,623 ($8,406) $697,685 30 ($1,867)
 Purchasing
Loan Principal Interest Insurance Utilities Taxes Maint. PMI HOA Tax Savings Std Ded. Monthly Cost Cum. Cost House Value
$315,785 $4,115 ($18,287) ($2,000) $0 ($4,599) ($3,999) $0 $0 $3,046 $10,700 ($2,496) ($21,723) $403,899
$311,426 $4,358 ($18,044) ($2,060) $0 ($4,599) ($4,119) $0 $0 $2,986 $10,984 ($2,516) ($43,201) $407,938
$306,811 $4,616 ($17,787) ($2,122) $0 ($4,599) ($4,243) $0 $0 $2,850 $11,275 ($2,543) ($64,485) $412,017
$301,923 $4,888 ($17,514) ($2,185) $0 ($4,599) ($4,370) $0 $0 $2,710 $11,573 ($2,571) ($85,555) $416,138
$296,746 $5,177 ($17,226) ($2,251) $0 ($4,599) ($4,501) $0 $0 $2,563 $11,880 ($2,599) ($106,392) $420,299
$291,264 $5,482 ($16,920) ($2,319) $0 ($4,645) ($4,636) $0 $0 $2,421 $12,195 ($2,632) ($127,008) $424,502
$285,458 $5,806 ($16,596) ($2,388) $0 ($4,691) ($4,775) $0 $0 $2,273 $12,518 ($2,665) ($147,380) $428,747
$279,309 $6,149 ($16,253) ($2,460) $0 ($4,738) ($4,918) $0 $0 $2,118 $12,850 ($2,700) ($167,482) $433,034
$272,798 $6,512 ($15,890) ($2,534) $0 ($4,786) ($5,066) $0 $0 $1,957 $13,190 ($2,736) ($187,289) $437,365
$265,901 $6,896 ($15,506) ($2,610) $0 ($4,833) ($5,218) $0 $0 $1,787 $13,540 ($2,773) ($206,773) $441,738
$258,598 $7,303 ($15,099) ($2,688) $0 ($4,882) ($5,374) $0 $0 $1,610 $13,899 ($2,811) ($225,902) $446,156
$250,863 $7,735 ($14,668) ($2,768) $0 ($4,931) ($5,536) $0 $0 $1,425 $14,267 ($2,851) ($244,645) $450,617
$242,672 $8,191 ($14,211) ($2,852) $0 ($4,980) ($5,702) $0 $0 $1,231 $14,645 ($2,892) ($262,966) $455,124
$233,998 $8,675 ($13,727) ($2,937) $0 ($5,030) ($5,873) $0 $0 $1,028 $15,033 ($2,934) ($280,831) $459,675
$224,811 $9,187 ($13,215) ($3,025) $0 ($5,080) ($6,049) $0 $0 $816 $15,432 ($2,978) ($298,197) $464,271
$215,081 $9,729 ($12,673) ($3,116) $0 ($5,131) ($6,230) $0 $0 $593 $15,840 ($3,024) ($315,025) $468,914
$204,777 $10,304 ($12,098) ($3,209) $0 ($5,182) ($6,417) $0 $0 $360 $16,260 ($3,071) ($331,268) $473,603
$193,865 $10,912 ($11,490) ($3,306) $0 ($5,234) ($6,610) $0 $0 $116 $16,691 ($3,120) ($346,880) $478,339
$182,309 $11,556 ($10,846) ($3,405) $0 ($5,286) ($6,808) $0 $0 $0 $17,133 ($3,158) ($361,668) $483,123
$170,070 $12,239 ($10,164) ($3,507) $0 ($5,339) ($7,012) $0 $0 $0 $17,587 ($3,188) ($375,452) $487,954
$157,109 $12,961 ($9,441) ($3,612) $0 ($5,393) ($7,223) $0 $0 $0 $18,054 ($3,219) ($388,159) $492,834
$143,383 $13,726 ($8,676) ($3,721) $0 ($5,446) ($7,439) $0 $0 $0 $18,532 ($3,251) ($399,715) $497,762
$128,846 $14,537 ($7,865) ($3,832) $0 ($5,501) ($7,662) $0 $0 $0 $19,023 ($3,283) ($410,039) $502,739
$113,451 $15,395 ($7,007) ($3,947) $0 ($5,556) ($7,892) $0 $0 $0 $19,527 ($3,316) ($419,046) $507,767
$97,147 $16,304 ($6,098) ($4,066) $0 ($5,611) ($8,129) $0 $0 $0 $20,045 ($3,351) ($426,647) $512,845
$79,880 $17,267 ($5,136) ($4,188) $0 ($5,668) ($8,373) $0 $0 $0 $20,576 ($3,386) ($432,744) $517,973
$61,594 $18,286 ($4,116) ($4,313) $0 ($5,724) ($8,624) $0 $0 $0 $21,121 ($3,422) ($437,236) $523,153
$42,229 $19,366 ($3,037) ($4,443) $0 ($5,782) ($8,883) $0 $0 $0 $21,681 ($3,459) ($440,014) $528,384
$21,720 $20,509 ($1,893) ($4,576) $0 ($5,839) ($9,149) $0 $0 $0 $22,255 ($3,497) ($440,963) $533,668
$0 $21,720 ($682) ($4,713) $0 ($5,898) ($9,424) $0 $0 $0 $22,845 ($3,536) ($439,960) $539,005
 Home Sale Rent Investment
Total $ In House Year Cap. Gains Tax RE Fees Exc. Tax Post-Sale $ Invest. $ Rent Benefit
$88,114 1 $0 ($24,234) ($7,189) $56,691 $95,205 167.9%
$96,512 2 $0 ($24,476) ($7,261) $64,774 $110,663 170.8%
$105,206 3 $0 ($24,721) ($7,334) $73,151 $126,451 172.9%
$114,215 4 $0 ($24,968) ($7,407) $81,839 $142,574 174.2%
$123,553 5 $0 ($25,218) ($7,481) $90,853 $159,040 175.1%
$133,238 6 $0 ($25,470) ($7,556) $100,212 $175,890 175.5%
$143,289 7 $0 ($25,725) ($7,632) $109,932 $193,135 175.7%
$153,725 8 $0 ($25,982) ($7,708) $120,035 $210,782 175.6%
$164,567 9 $0 ($26,242) ($7,785) $130,540 $228,841 175.3%
$175,837 10 $0 ($26,504) ($7,863) $141,470 $247,323 174.8%
$187,558 11 $0 ($26,769) ($7,942) $152,847 $266,236 174.2%
$199,754 12 $0 ($27,037) ($8,021) $164,696 $285,591 173.4%
$212,451 13 $0 ($27,307) ($8,101) $177,043 $305,399 172.5%
$225,677 14 $0 ($27,580) ($8,182) $189,915 $325,672 171.5%
$239,461 15 $0 ($27,856) ($8,264) $203,341 $346,419 170.4%
$253,833 16 $0 ($28,135) ($8,347) $217,351 $367,655 169.2%
$268,826 17 $0 ($28,416) ($8,430) $231,980 $389,391 167.9%
$284,474 18 $0 ($28,700) ($8,514) $247,259 $411,639 166.5%
$300,814 19 $0 ($28,987) ($8,600) $263,227 $434,270 165.0%
$317,884 20 $0 ($29,277) ($8,686) $279,921 $457,158 163.3%
$335,724 21 $0 ($29,570) ($8,772) $297,382 $480,295 161.5%
$354,379 22 $0 ($29,866) ($8,860) $315,653 $503,669 159.6%
$373,894 23 $0 ($30,164) ($8,949) $334,780 $527,271 157.5%
$394,316 24 $0 ($30,466) ($9,038) $354,812 $551,088 155.3%
$415,698 25 $0 ($30,771) ($9,129) $375,798 $575,107 153.0%
$438,093 26 $0 ($31,078) ($9,220) $397,794 $599,313 150.7%
$461,558 27 $0 ($31,389) ($9,312) $420,857 $623,692 148.2%
$486,156 28 $0 ($31,703) ($9,405) $445,047 $648,226 145.7%
$511,948 29 $0 ($32,020) ($9,499) $470,429 $672,897 143.0%
$539,005 30 $0 ($32,340) ($9,594) $497,070 $697,685 140.4%