Compare the true total cost of homeownership vs renting, including hidden costs and limited tax benefits
The $10K SALT cap is typically consumed by state income tax alone for high earners. Your property tax provides zero federal tax benefit.
Only interest on the first $750K of mortgage debt is deductible. Larger loans get prorated deductions.
Enter your numbers to compare renting vs buying over time
| Month | Buy (Gross) | Buy (Net) | Rent | Net Diff |
|---|---|---|---|---|
| 1 | $10,585 | $8,930 | $4,525 | +$ 4,405 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,500 Property Tax
$1,500
└ Principal
$1,085 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,085 − Tax Benefit
-$570
Net Cost (true expense)
$8,930
*Estimated tax benefit from deducting $
4,063
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 2 | $10,585 | $8,925 | $4,525 | +$ 4,400 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,494 Property Tax
$1,500
└ Principal
$1,091 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,091 − Tax Benefit
-$569
Net Cost (true expense)
$8,925
*Estimated tax benefit from deducting $
4,059
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 3 | $10,585 | $8,921 | $4,525 | +$ 4,396 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,488 Property Tax
$1,500
└ Principal
$1,097 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,097 − Tax Benefit
-$568
Net Cost (true expense)
$8,921
*Estimated tax benefit from deducting $
4,055
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 4 | $10,585 | $8,916 | $4,525 | +$ 4,391 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,482 Property Tax
$1,500
└ Principal
$1,103 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,103 − Tax Benefit
-$566
Net Cost (true expense)
$8,916
*Estimated tax benefit from deducting $
4,051
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 5 | $10,585 | $8,911 | $4,525 | +$ 4,386 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,476 Property Tax
$1,500
└ Principal
$1,109 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,109 − Tax Benefit
-$565
Net Cost (true expense)
$8,911
*Estimated tax benefit from deducting $
4,048
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 6 | $10,585 | $8,907 | $4,525 | +$ 4,382 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,470 Property Tax
$1,500
└ Principal
$1,115 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,115 − Tax Benefit
-$564
Net Cost (true expense)
$8,907
*Estimated tax benefit from deducting $
4,044
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 7 | $10,585 | $8,902 | $4,525 | +$ 4,377 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,464 Property Tax
$1,500
└ Principal
$1,121 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,121 − Tax Benefit
-$562
Net Cost (true expense)
$8,902
*Estimated tax benefit from deducting $
4,040
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 8 | $10,585 | $8,897 | $4,525 | +$ 4,372 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,458 Property Tax
$1,500
└ Principal
$1,127 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,127 − Tax Benefit
-$561
Net Cost (true expense)
$8,897
*Estimated tax benefit from deducting $
4,036
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 9 | $10,585 | $8,892 | $4,525 | +$ 4,367 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,452 Property Tax
$1,500
└ Principal
$1,133 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,133 − Tax Benefit
-$560
Net Cost (true expense)
$8,892
*Estimated tax benefit from deducting $
4,033
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 10 | $10,585 | $8,888 | $4,525 | +$ 4,363 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,446 Property Tax
$1,500
└ Principal
$1,139 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,139 − Tax Benefit
-$558
Net Cost (true expense)
$8,888
*Estimated tax benefit from deducting $
4,029
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 11 | $10,585 | $8,883 | $4,525 | +$ 4,358 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,440 Property Tax
$1,500
└ Principal
$1,145 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,145 − Tax Benefit
-$557
Net Cost (true expense)
$8,883
*Estimated tax benefit from deducting $
4,025
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 12 | $10,585 | $8,878 | $4,525 | +$ 4,353 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,434 Property Tax
$1,500
└ Principal
$1,151 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,151 − Tax Benefit
-$556
Net Cost (true expense)
$8,878
*Estimated tax benefit from deducting $
4,021
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 13 | $10,585 | $8,873 | $4,660 | +$ 4,213 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,427 Property Tax
$1,500
└ Principal
$1,157 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,157 − Tax Benefit
-$554
Net Cost (true expense)
$8,873
*Estimated tax benefit from deducting $
4,017
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 14 | $10,585 | $8,868 | $4,660 | +$ 4,208 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,421 Property Tax
$1,500
└ Principal
$1,164 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,164 − Tax Benefit
-$553
Net Cost (true expense)
$8,868
*Estimated tax benefit from deducting $
4,013
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 15 | $10,585 | $8,863 | $4,660 | +$ 4,203 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,415 Property Tax
$1,500
└ Principal
$1,170 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,170 − Tax Benefit
-$552
Net Cost (true expense)
$8,863
*Estimated tax benefit from deducting $
4,009
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 16 | $10,585 | $8,858 | $4,660 | +$ 4,198 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,408 Property Tax
$1,500
└ Principal
$1,176 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,176 − Tax Benefit
-$550
Net Cost (true expense)
$8,858
*Estimated tax benefit from deducting $
4,005
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 17 | $10,585 | $8,853 | $4,660 | +$ 4,193 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,402 Property Tax
$1,500
└ Principal
$1,183 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,183 − Tax Benefit
-$549
Net Cost (true expense)
$8,853
*Estimated tax benefit from deducting $
4,001
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 18 | $10,585 | $8,848 | $4,660 | +$ 4,188 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,396 Property Tax
$1,500
└ Principal
$1,189 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,189 − Tax Benefit
-$547
Net Cost (true expense)
$8,848
*Estimated tax benefit from deducting $
3,997
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 19 | $10,585 | $8,843 | $4,660 | +$ 4,183 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,389 Property Tax
$1,500
└ Principal
$1,196 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,196 − Tax Benefit
-$546
Net Cost (true expense)
$8,843
*Estimated tax benefit from deducting $
3,993
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 20 | $10,585 | $8,838 | $4,660 | +$ 4,178 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,383 Property Tax
$1,500
└ Principal
$1,202 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,202 − Tax Benefit
-$545
Net Cost (true expense)
$8,838
*Estimated tax benefit from deducting $
3,989
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 21 | $10,585 | $8,833 | $4,660 | +$ 4,173 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,376 Property Tax
$1,500
└ Principal
$1,209 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,209 − Tax Benefit
-$543
Net Cost (true expense)
$8,833
*Estimated tax benefit from deducting $
3,985
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 22 | $10,585 | $8,828 | $4,660 | +$ 4,168 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,370 Property Tax
$1,500
└ Principal
$1,215 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,215 − Tax Benefit
-$542
Net Cost (true expense)
$8,828
*Estimated tax benefit from deducting $
3,981
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 23 | $10,585 | $8,823 | $4,660 | +$ 4,163 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,363 Property Tax
$1,500
└ Principal
$1,222 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,222 − Tax Benefit
-$540
Net Cost (true expense)
$8,823
*Estimated tax benefit from deducting $
3,977
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 24 | $10,585 | $8,818 | $4,660 | +$ 4,158 |
|
Monthly Buy Cost Breakdown:
Mortgage P&I
$
7,585
└ Interest
$6,356 Property Tax
$1,500
└ Principal
$1,228 Insurance
$250 Maintenance
$1,250
Gross Total
$10,585
− Principal (equity)
-$
1,228 − Tax Benefit
-$539
Net Cost (true expense)
$8,818
*Estimated tax benefit from deducting $
3,973
interest (capped at $750K MFJ) at 35% rate, only for amount
above standard deduction.
| ||||
| 24-Mo Total | $254,036 |
$212,996
($27,724
equity)
| $110,220 | +$ 102,776 |
Click any row to see the detailed breakdown. Tax benefit calculated based on mortgage interest deduction for MFJ (capped at $750K debt), only applicable if itemized deductions exceed the standard deduction.
Don't buy a house "for the tax benefits." For most high earners, the only real tax benefit is mortgage interest on debt up to $750K, and only if that interest plus other itemized deductions exceeds the standard deduction. Property tax provides zero benefit.
This calculator is for educational purposes only. Real estate decisions depend on many factors not included here: local market conditions, personal circumstances, career stability, lifestyle preferences, and more. Always consult with a financial advisor before making major financial decisions.