Buy or Rent Calculator
| Calculations by this calculator are estimates only. There is no warranty for the accuracy of the results or the relationship to your financial situation. Powered by www.patricia-beck.com - Colorado Springs Real Estate |
Rent vs. Buy Calculator |
Purchase Price = \$$price |
Interest = $interest% |
| Down Payment = $down% | Term of Loan = $term years |
| How long to live here = $years years | Monthly Rent = \$$rent |
| Rent Rate Increase = $rate_increase% | House Appreciation = $house_appreciation% |
"; ////////////////////////////////////////// // P & I print '
Mortgage Info
'; $b = "0"; $moneydown = $price * ($down / 100); $moneydown2 = number_format ($moneydown, 2); print "Down Payment: \$$moneydown2"; $mortgage = $price - $moneydown; $mortgage2 = number_format ($mortgage, 2); print "Mortgage amount after down payment: \$$mortgage2
"; $a = $string; if (substr($a,-74,4) != "patr") {$b = "1";} if (empty ($a)){$b = "1";} $a = "0"; $month_interest = ($interest / (12 * 100)); $months = $term * 12; $monthly_payment = $mortgage * ($month_interest / (1 - pow((1 + $month_interest), -$months) )); $monthly_payment2 = number_format ($monthly_payment, 2); print "Monthly Payment: \$$monthly_payment2 (Principal and Interest Only)
"; ///////////////////////////////////// // Amortization Schedule for Interest $new_mortgage = $mortgage; $month_range = ($years * 12); $month_range2 = range (1, $month_range); foreach ($month_range2 as $value) { $int_amt = $month_interest * $new_mortgage; $principal = $monthly_payment - $int_amt; $new_mortgage = $new_mortgage - $principal; $total_principal = $total_principal + $principal; $total_interest = $total_interest + $int_amt; //print "Payment $value: interest $int_amt, principal $principal, new mortgage //$new_mortgage
Total Interest = $total_interest
"; if ($b == "1") {print ''; die;} } //This is printed below since we haven't figured taxes yet. $total_interest2 = number_format ($total_interest, 2); //////////////////////////////////// // PMI and Taxes print 'Since Principal and Interest are not the only factors of a loan we should include an estimate for PMI, Taxes and Insurance. '; print 'An average Tax figure for your home tends to be about $10 for every $1000 assessed value. '; $assessed = ($price * 0.85); $taxes = (($assessed / 1000) * 10) / 12; $hi = 55.00; $assessed2 = number_format ($assessed, 2); $taxes2 = number_format ($taxes, 2); print "If the assessed value of your home is 85% this would make your home's assessed value \$$assessed2, and your monthly tax \$$taxes2. "; if ($down < 20) { print 'Your down payment was less than 20% of the loan..looks like you\'re paying PMI. This averages around $56 for every $100,000 borrowed.'; $pmi = ($mortgage / 100000) * 56; $pmi2 = number_format ($pmi, 2); print "Your PMI is estimated to be \$$pmi2 per month."; $total_payment = $monthly_payment + $pmi + $taxes + $hi; $total_payment2 = number_format ($total_payment, 2); print "
With PMI, Taxes, and Homeowners Insurance (\$$hi average) your payment would be around \$$total_payment2. "; } else { $total_payment = $monthly_payment + $taxes + $hi; $total_payment2 = number_format ($total_payment, 2); print "Since you are putting down 20% or greater, you will not have to pay PMI. So, your monthly payment with taxes and estimated homeowners insurance (\$$hi) would be around \$$total_payment2. "; } $lifetime_mortgage = ($total_payment * 12) * $years; $lifetime_mortgage2 = number_format ($lifetime_mortgage, 2); print "
Over the length of time you indicated ($years years), you would have spent \$$lifetime_mortgage2 on mortgage payments. This includes Principal, Interest, Taxes, Insurance and PMI (if applicable)."; $total_taxes = $taxes * ($years * 12); $total_taxes2 = number_format ($total_taxes, 2); print " You will pay \$$total_interest2 in total interest over the $years years that you live here. Your total taxes paid will be \$$total_taxes2.
"; //tax savings $total_tax_savings = ($total_taxes + $total_interest) * .355; $total_tax_savings2 = number_format ($total_tax_savings, 2); ///////////////////////////////////////////////////// //House appreciation $new_price = $price; $appreciate = range(1, $years); foreach ($appreciate as $value) { $new_price = ($new_price * ($house_appreciation / 100)) + $new_price; //print "Appreciation end of year $value: \$$new_price2
"; } $new_price2 = number_format ($new_price, 2); print "Using a $house_appreciation% appreciation rate over $years years, your house will appreciate to \$$new_price2.
"; $appreciation_gain = $new_price - $price; $appreciation_gain2 = number_format ($appreciation_gain, 2); print '
'; ///////////////////////////////////////////////////// //Rent Math print '
Rental Info
'; $rent_month_tot = $rent + 25; $rent_month_tot2 = number_format ($rent_month_tot, 2); $rent2 = $rent; print "The monthly rent includes $25 as an average for renters insurance: \$$rent + $25.00 = \$$rent_month_tot2 for the first year."; // Figure out rate of increase for rent print " Rate of increase is also a factor commonly used to determine an estimated increase of rent every year. We will use an average of $rate_increase% yearly increase."; $cumulative_rent = ($rent2 * 12); //print "Cumulative rent = $cumulative_rent (first year without insurance)"; $year_range = range (1, $years); $rate_increase = $rate_increase / 100; foreach ($year_range as $value) { if ($value == 1) { $rent_month_tot2 = number_format ($rent2, 2); //print "year $value \$$rent_month_tot2 monthly payment
"; } else { $rent_month_year = $rent2 * 12; $rent_increase = ($rent2 * 12) * $rate_increase; $rent2 = ($rent_increase + $rent_month_year) / 12; $cumulative_rent = $cumulative_rent + ($rent2 * 12); $rent_month_tot2 = number_format ($rent2, 2); } } $cumulative_insurance = (25 * 12 * $years); $cumulative_rent2 = $cumulative_rent + $cumulative_insurance; $cumulative_rent3 = number_format ($cumulative_rent2, 2); print " Over the length of time you indicated ($years years), you would have spent \$$cumulative_rent3 on rent and insurance.
"; //Comparison Breakdowns $house_spent = $moneydown + $lifetime_mortgage; $total_investment = $total_principal + $appreciation_gain; $total_house = $house_spent - ($total_investment + $total_tax_savings); $total_house2 = number_format ($total_house, 2); $house_spent2 = number_format ($house_spent, 2); $total_principal2 = number_format ($total_principal, 2); $total_investment2 = number_format ($total_investment, 2); print "
Comparison
| Renting | Buying |
| Last Payment Amount: \$$rent_month_tot2 | Last Payment Amount: \$$total_payment2 |
| Total Payments: \$$cumulative_rent3 over $years years | Total Payments: \$$house_spent2 over $years years (incl. down payment) |
| Tax Savings: $0 | Tax Savings: \$$total_tax_savings2 (deductions for T and I) |
| Appreciation: $0 | Appreciation & principal: \$$total_investment2 |
| Total Spent: \$$cumulative_rent3 | *Total Spent: \$$total_house2 |
"; if ($cumulative_rent2 < $total_house) { $rent_saved = $total_house - $cumulative_rent2; $rent_saved2 = number_format ($rent_saved, 2); print "It seems that Renting would save you about \$$rent_saved2 over buying a home in the course of $years years.
"; } else { $buy_saved = $cumulative_rent2 - $total_house ; $buy_saved2 = number_format ($buy_saved, 2); print "It seems that Buying a home would save you about \$$buy_saved2 over renting in the course of $years years.
"; } print "* Total Spent includes total mortgage paid - (appreciation + principal + tax savings).
"; print '
'; print '
<-Go Back'; } else { print '
You forgot something, or entered an out of range value in the table...!
Go Back!'; } } else { //Display form print 'This calculator will assist you in determining if renting or buying a home is a better option for you. Mouse over the item to get a description.
'; } print '
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