Introduction
This calculator is designed to help you determine the financial implications of renting vs buying a home as you approach retirement.
By inputting your personal financial details and housing options, the calculator will provide a comparative analysis of the total costs, investment growth,
and net positions for both scenarios over time.
Assumptions used in these calculations:
- All costs are adjusted for inflation based on the average inflation rate you provide.
- Social security and other retirement income sources are NOT inflation adjusted.
- Tax rates and contributions (outside of that assessed upon a home) do not factor into the calculations.
- Values shown are calculated for what they would be at the end of the year.
- Values are shown in nominal values, they are not inflation corrected.
As a general rule when interpreting the results, if the Investment Value is positive, you still have money in the bank. If it is negative, but your Cumulative Asset Value is positive,
you have equity in your home, but no money in the bank. If both are negative, you are in debt. Net Positions is an indicator of how efficient different scenarios are at building intergenerational wealth (i.e., inheritance).
Please note that this calculator is intended for educational purposes only and should not be considered as financial advice.
It is recommended to consult with a financial advisor for personalized guidance based on your specific situation. All information collected is stored locally in your browser and not transmitted to any server.