Rent vs Buy Planner — NRI Edition

This is an educational planner, not financial or tax advice. It is built to compare scenarios. The result can change fast if you change home appreciation, investment return, tax rate, or how long you stay.

Input mode

Basic mode keeps the calculator readable. Advanced mode opens tax, PMI, rental-conversion, transaction, and repair assumptions.

Quick scenarios

Home & Loan

Home Price ($)

Down Payment (%)

Under 20% usually adds PMI.

Mortgage Rate (%)

Loan Term

Annual Ownership Costs

Property Tax (% of home value / yr)

NJ can be around 2%+. CA is often lower.

Property Tax Growth (% / yr)

HOA ($ / month)

Homeowners Insurance ($ / yr)

Insurance Growth (% / yr)

Maintenance & Repairs

Maintenance (% of home value / yr)

Many people use 1% to 2% as a rough rule.

Fixed Repairs Reserve ($ / yr)

Optional extra cushion for HVAC, roof, appliances, etc.

Home Improvements Added to Basis ($ total)

Used for capital gains basis.

Transaction Costs

Buying Closing Costs (%)

Selling Agent Fee (%)

Selling Other Closing Costs (%)

Buyer Moving / Setup Cost ($)

Movers, furniture, minor setup items.

Renting

Current Monthly Rent ($)

Annual Rent Increase (%)

Renter Insurance ($ / yr)

Utilities Difference: Owner Pays Extra ($ / month)

Extra utilities/landscaping/trash/water if owner pays more than renter.

Security Deposit ($)

Renter Moving Cost ($)

Truck, movers, deposits, setup costs.

Rent Reset After Moving?

Rent Reset Increase (%)

Applied at plan year if rent reset is on.

Growth Assumptions

Home Appreciation (% / yr)

Investment Return (% / yr)

Investment Tax Drag (% / yr)

Approx annual drag from dividends, turnover, state tax, etc.

Investment Capital Gains Tax at Exit (%)

Years With No Home Appreciation

Useful for testing a flat market after purchase.

Do You Actually Invest the Savings?

Tax Profile

Filing Status

Marginal Tax Bracket (%)

State Income Tax Paid ($ / yr)

Used with property tax under SALT cap.

SALT Cap ($)

Mortgage Interest Deduction Limit ($ loan)

LTCG Rate on Home Sale (%)

Include 3.8% NIIT?

Timeline & NRI Profile

How long do you plan to stay?

Visa Status

Years Left on Current Visa / Status

India Return Plans

PMI Settings

PMI Rate (% of loan / yr)

PMI Removal Method

If You Cannot Sell

Rental Conversion Monthly Rent ($)

Vacancy (% of rent)

Property Management (% of rent)

Landlord Insurance Extra ($ / yr)

Hold-Vacant Period Before Renting (months)

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Plain-English Takeaway

What could break the answer?

Risk Check

Breakeven Year

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When buying pulls ahead

Monthly Buy Cost

—

Year 1 cash outflow

Price-to-Rent

—

Home price / annual rent

10yr Net Worth Gap

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Buy vs rent+invest

Net Worth Over Time

Buying means home equity after selling costs and taxes. Renting means investing the down payment, buying costs, and annual cash-flow difference.

Assumption Sensitivity

This shows whether the decision is stable or depends heavily on appreciation and market returns.

Scenario	Appreciation	Investment Return	Rent Growth	Winner at Plan Year	Gap

A stable answer across these rows means the result is more dependable. A flip between buy and rent means the decision depends heavily on assumptions.

Stress Tests

These are not predictions. They show how the decision behaves if life or the market goes against the base case.

Shock scenarios are simplified: a short-term home price drop, a few flat appreciation years, and a lower renter investment return.

Tax Deduction Reality Check

SALT cap, standard deduction, mortgage interest limit, and what you actually save in Year 1.

Forced-Exit Analysis

What happens if you have to sell because of layoff, visa denial, relocation, or India return.

Year	Home Value	Loan Balance	Selling Costs	CG Tax	Walkaway Cash	vs Renting

Tax treatment is simplified. Short-term before 1 year, long-term after 1 year, and primary residence exclusion generally requires 2 years of use within the last 5 years.

If You Cannot Sell: Rental Conversion

This estimates what happens if you move out and rent the home instead of selling immediately.

NRI-Specific Warnings

How the Math Works

A plain-English check so the result does not feel like a black box.

Buying net worth =
Home value
- mortgage balance
- selling costs
- capital gains tax

Renting net worth =
Down payment invested
+ buying closing costs invested (includes buyer move cost)
+ security deposit
- renter moving cost
+ selected share of annual cash-flow difference invested
- estimated investment tax at exit
  (tax applies only to gains above total invested contributions)

Annual buyer cash outflow =
Principal + interest mortgage payment
+ property tax
+ PMI
+ maintenance
+ fixed repairs
+ insurance
+ HOA
+ extra owner utilities
- actual tax benefit

Annual renter cash outflow =
Rent (with optional reset after plan year)
+ renter insurance

Annual renter savings =
Annual buyer cash outflow - annual renter cash outflow

Invested renter savings =
Annual renter savings x investment behavior percentage

Year-by-Year Projection

Full 30-year model. Green means buying ahead. Blue means renting ahead.