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Rent vs Buy Calculator for Tennessee

Compare the true financial cost of renting versus buying over your expected time horizon. The right answer depends on how long you plan to stay.

Inputs

Home price$350,000
Down payment10%
Mortgage rate7%
Current monthly rent$1,800/mo
Years to compare7 years
Annual home appreciation3%/yr
Annual rent increase3%/yr

Results over 7 years

Buying is more cost-effective

$52,977

less than renting over 7 years

Total cost of buying (net of equity)$112,533
Total cost of renting$165,509
Monthly ownership cost (est.)$2,629/mo
Home value in 7 years$430,456

Simplified model. Excludes investment returns on down payment, maintenance costs, and tax benefits. Actual results vary.

The key variable: how long you stay

Buying almost always wins over long time horizons because you build equity and benefit from appreciation. Renting often wins over short horizons because the transaction costs of buying (closing costs, selling costs) take years to recoup.

The break-even point — where buying becomes more cost-effective than renting — typically falls between 3 and 7 years depending on local market conditions, appreciation rates, and the rent-to-price ratio.

Ready to explore buying?

If the numbers suggest buying makes sense for your timeline, the next step is getting preapproved to know exactly what you can afford.

Get Preapproved