Rent vs. Buy Calculator Workbook: Running Your Own Numbers

Generic rent-vs-buy calculators produce generic answers. The most useful analysis is one built on your specific rent level, the homes you are actually considering, your local tax rate, your investment return assumptions, and how long you realistically plan to stay. This course walks you through that analysis from scratch, worksheet by worksheet. By the end of this course you will be able to complete a full rent-vs-buy financial analysis using your own local market data, calculate the break-even holding period for a specific property, and produce a written decision summary that documents your assumptions and conclusions. What you will learn: - How to gather the inputs needed for a rigorous analysis: local home prices, rent comparables, property tax rates, and insurance estimates - Building the cost-of-buying model: amortization, tax deductions, maintenance reserve, and projected transaction costs at sale - Building the cost-of-renting model: current rent, projected rent increases, and renter's insurance - The opportunity cost worksheet: modeling the down payment and closing costs invested at a conservative long-term return - How to calculate the break-even year: the point at which cumulative ownership costs dip below the rental alternative - Sensitivity analysis: how the break-even year changes when you adjust appreciation rate, rent growth, or investment return assumptions - A lifestyle factor scoring exercise: quantifying the non-financial variables so they can be weighed alongside the financial result The course is structured around seven sequential worksheets. Each is introduced with a short reading that explains the inputs and their sources, followed by a worked example and a blank version for your own data. A final synthesis template asks you to record your break-even year, your three key financial assumptions, and your lifestyle score, producing a one-page documented decision summary. This course is designed for individuals or couples who are actively weighing a buy-versus-rent decision in a specific market and want a rigorous, personalized analysis. Suitable for those with no prior financial modeling experience. This course is educational and does not substitute for advice from a licensed real estate or financial professional.