{"id":8166,"date":"2026-02-12T10:15:00","date_gmt":"2026-02-12T15:15:00","guid":{"rendered":"https:\/\/stepfoxthemes.com\/doorstep-elementor\/rent-vs-buy-calculator-explained\/"},"modified":"2026-10-06T11:43:58","modified_gmt":"2026-10-06T15:43:58","slug":"rent-vs-buy-calculator-explained","status":"publish","type":"post","link":"https:\/\/stepfoxthemes.com\/doorstep-elementor\/rent-vs-buy-calculator-explained\/","title":{"rendered":"Rent vs. buy in Miami: the calculator, explained"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">\u201cRent is money down the drain\u201d is one of the most repeated phrases in real estate. It is also too simple. Whether buying makes more sense than renting depends on prices, interest rates, how long you will stay and what you would do with the money otherwise. Here is how to run the numbers properly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The costs of buying<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When you buy, your monthly payment is only part of the story. A complete calculation includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Mortgage interest:<\/strong> the true cost of borrowing. In the early years, most of your payment goes to interest.<\/li>\n\n\n<li><strong>Property taxes:<\/strong> around 1.8% to 2% of the purchase price per year in Miami-Dade, with a homestead exemption that caps increases for primary residences.<\/li>\n\n\n<li><strong>Insurance:<\/strong> homeowners and, if needed, flood insurance.<\/li>\n\n\n<li><strong>HOA fees<\/strong> for condos and some townhouses.<\/li>\n\n\n<li><strong>Maintenance:<\/strong> budget roughly 1% of the home\u2019s value per year for a house, less for a condo.<\/li>\n\n\n<li><strong>Transaction costs:<\/strong> closing costs when you buy (2% to 5%) and agent fees and taxes when you sell.<\/li>\n\n\n<li><strong>Opportunity cost:<\/strong> the return you could have earned by investing your down payment instead.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">The benefits of buying<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Principal repayment:<\/strong> part of each payment builds equity.<\/li>\n\n\n<li><strong>Appreciation:<\/strong> Miami home values have historically risen over the long term, although not in a straight line.<\/li>\n\n\n<li><strong>Stability:<\/strong> no rent increases and no landlord deciding not to renew.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">The costs of renting<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Rent<\/strong>, which typically rises every year.<\/li>\n\n\n<li><strong>Renter\u2019s insurance<\/strong>, which is inexpensive.<\/li>\n\n\n<li><strong>Moving costs<\/strong> whenever you have to relocate.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">A Miami example<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Imagine a two-bedroom condo priced at $650,000 that would rent for about $3,900 per month.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>With 20% down ($130,000) and a 30-year mortgage at 6.5%, the principal and interest payment is about $3,290 per month.<\/li>\n\n\n<li>Add property taxes (about $1,000 per month), HOA fees ($900) and insurance ($150), and the total monthly cost is about $5,340.<\/li>\n\n\n<li>Of that, roughly $485 per month goes to paying down principal in the first year.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">On a monthly basis, buying costs more than renting in this example. But if the condo appreciates by 3% per year, the owner gains about $19,500 in value in the first year, plus about $5,800 in principal repayment.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">The break-even point is usually somewhere between four and seven years. If you might move sooner than that, renting often wins.<\/p>\n<cite>Naomi Okafor, Senior Agent<\/cite><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\">How to use our calculator<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Every <a href=\"\/doorstep-elementor\/properties\/\">Doorstep listing<\/a> includes a mortgage calculator \u2014 try it with the example above:<\/p>\n\n\n<div class=\"wp-block-real-estate-mortgage-calculator sfre-mortgage-calculator\"><div class=\"sfre-mortgage\" data-sfre-mortgage=\"{&quot;symbol&quot;:&quot;$&quot;,&quot;pos&quot;:&quot;before&quot;,&quot;locale&quot;:&quot;en-US&quot;,&quot;taxRate&quot;:1.9,&quot;insRate&quot;:0.35,&quot;termFmt&quot;:&quot;%s-yr fixed&quot;}\"><div class=\"sfre-mortgage__form\" role=\"group\" aria-label=\"Loan details\"><div class=\"sfre-mortgage__field sfre-mortgage__field--full\"><label class=\"sfre-mortgage__label\" for=\"sfre-mc-1-price\">Home price<\/label><span class=\"sfre-mc-input\"><span class=\"sfre-mc-input__affix\" aria-hidden=\"true\">$<\/span><input type=\"text\" inputmode=\"decimal\" autocomplete=\"off\" id=\"sfre-mc-1-price\" data-sfre-m=\"price\" value=\"650,000\"><\/span><\/div><div class=\"sfre-mortgage__field sfre-mortgage__field--full\"><label class=\"sfre-mortgage__label\" for=\"sfre-mc-1-down\">Down payment<\/label><span class=\"sfre-mc-input sfre-mc-input--pair\"><span><span class=\"sfre-mc-input__affix\" aria-hidden=\"true\">$<\/span><input type=\"text\" inputmode=\"decimal\" autocomplete=\"off\" id=\"sfre-mc-1-down\" data-sfre-m=\"down\" value=\"130,000\"><\/span><span><input type=\"text\" inputmode=\"decimal\" autocomplete=\"off\" id=\"sfre-mc-1-downpct\" data-sfre-m=\"downPct\" value=\"20\" aria-label=\"Down payment percent\"><span class=\"sfre-mc-input__affix\" aria-hidden=\"true\">%<\/span><\/span><\/span><input class=\"sfre-range\" type=\"range\" min=\"0\" max=\"100\" step=\"1\" data-sfre-m=\"downRange\" value=\"20\" style=\"--sfre-range-pct:20%\" aria-label=\"Down payment percent\"><\/div><div class=\"sfre-mortgage__field\"><label class=\"sfre-mortgage__label\" for=\"sfre-mc-1-rate\">Interest rate<\/label><span class=\"sfre-mc-input\"><input type=\"text\" inputmode=\"decimal\" autocomplete=\"off\" id=\"sfre-mc-1-rate\" data-sfre-m=\"rate\" value=\"6.5\"><span class=\"sfre-mc-input__affix\" aria-hidden=\"true\">%<\/span><\/span><\/div><fieldset class=\"sfre-mortgage__field\"><legend>Loan term<\/legend><div class=\"sfre-pseg\"><label><input type=\"radio\" name=\"sfre-mc-1-term\" value=\"15\" data-sfre-m=\"term\"><span>15 yr<\/span><\/label><label><input type=\"radio\" name=\"sfre-mc-1-term\" value=\"20\" data-sfre-m=\"term\"><span>20 yr<\/span><\/label><label><input type=\"radio\" name=\"sfre-mc-1-term\" value=\"30\" data-sfre-m=\"term\" checked='checked'><span>30 yr<\/span><\/label><\/div><\/fieldset><div class=\"sfre-mortgage__field\"><label class=\"sfre-mortgage__label\" for=\"sfre-mc-1-tax\">Property tax \/ yr<\/label><span class=\"sfre-mc-input\"><span class=\"sfre-mc-input__affix\" aria-hidden=\"true\">$<\/span><input type=\"text\" inputmode=\"decimal\" autocomplete=\"off\" id=\"sfre-mc-1-tax\" data-sfre-m=\"tax\" value=\"12,350\" data-sfre-auto><\/span><\/div><div class=\"sfre-mortgage__field\"><label class=\"sfre-mortgage__label\" for=\"sfre-mc-1-ins\">Home insurance \/ yr<\/label><span class=\"sfre-mc-input\"><span class=\"sfre-mc-input__affix\" aria-hidden=\"true\">$<\/span><input type=\"text\" inputmode=\"decimal\" autocomplete=\"off\" id=\"sfre-mc-1-ins\" data-sfre-m=\"ins\" value=\"2,275\" data-sfre-auto><\/span><\/div><div class=\"sfre-mortgage__field sfre-mortgage__field--full\"><label class=\"sfre-mortgage__label\" for=\"sfre-mc-1-hoa\">HOA dues \/ mo<\/label><span class=\"sfre-mc-input\"><span class=\"sfre-mc-input__affix\" aria-hidden=\"true\">$<\/span><input type=\"text\" inputmode=\"decimal\" autocomplete=\"off\" id=\"sfre-mc-1-hoa\" data-sfre-m=\"hoa\" value=\"0\"><\/span><\/div><\/div><div class=\"sfre-mortgage__result\"><div><p class=\"sfre-mortgage__kicker\">Estimated monthly payment<\/p><p class=\"sfre-mortgage__monthly\" aria-live=\"polite\" aria-atomic=\"true\"><span data-sfre-out=\"monthly\">$4,506<\/span><small>\/mo<\/small><\/p><\/div><div class=\"sfre-mortgage__chart\"><div class=\"sfre-donut\"><svg viewBox=\"0 0 42 42\" aria-hidden=\"true\" focusable=\"false\"><circle class=\"sfre-donut__track\" cx=\"21\" cy=\"21\" r=\"15.9155\" fill=\"none\" stroke-width=\"5.5\"><\/circle><circle class=\"sfre-donut__seg sfre-donut__seg--pi\" data-sfre-seg=\"pi\" cx=\"21\" cy=\"21\" r=\"15.9155\" fill=\"none\" stroke-width=\"5.5\" stroke-dasharray=\"72.150 27.850\" stroke-dashoffset=\"25.000\"><\/circle><circle class=\"sfre-donut__seg sfre-donut__seg--tax\" data-sfre-seg=\"tax\" cx=\"21\" cy=\"21\" r=\"15.9155\" fill=\"none\" stroke-width=\"5.5\" stroke-dasharray=\"22.042 77.958\" stroke-dashoffset=\"-47.950\"><\/circle><circle class=\"sfre-donut__seg sfre-donut__seg--hoa\" data-sfre-seg=\"hoa\" cx=\"21\" cy=\"21\" r=\"15.9155\" fill=\"none\" stroke-width=\"5.5\" stroke-dasharray=\"0.000 100.000\" stroke-dashoffset=\"-70.792\" style=\"opacity:0\"><\/circle><circle class=\"sfre-donut__seg sfre-donut__seg--ins\" data-sfre-seg=\"ins\" cx=\"21\" cy=\"21\" r=\"15.9155\" fill=\"none\" stroke-width=\"5.5\" stroke-dasharray=\"3.408 96.592\" stroke-dashoffset=\"-70.792\"><\/circle><\/svg><div class=\"sfre-donut__center\"><strong data-sfre-out=\"rate\">6.50%<\/strong><span data-sfre-out=\"term\">30-yr fixed<\/span><\/div><\/div><ul class=\"sfre-legend\"><li data-sfre-row=\"pi\"><span class=\"sfre-legend__dot sfre-legend__dot--pi\" aria-hidden=\"true\"><\/span><span>Principal &amp; interest<em data-sfre-pct=\"pi\">73%<\/em><\/span><strong data-sfre-out=\"pi\">$3,287<\/strong><\/li><li data-sfre-row=\"tax\"><span class=\"sfre-legend__dot sfre-legend__dot--tax\" aria-hidden=\"true\"><\/span><span>Property tax<em data-sfre-pct=\"tax\">23%<\/em><\/span><strong data-sfre-out=\"tax\">$1,029<\/strong><\/li><li data-sfre-row=\"hoa\" hidden><span class=\"sfre-legend__dot sfre-legend__dot--hoa\" aria-hidden=\"true\"><\/span><span>HOA dues<em data-sfre-pct=\"hoa\">0%<\/em><\/span><strong data-sfre-out=\"hoa\">$0<\/strong><\/li><li data-sfre-row=\"ins\"><span class=\"sfre-legend__dot sfre-legend__dot--ins\" aria-hidden=\"true\"><\/span><span>Home insurance<em data-sfre-pct=\"ins\">4%<\/em><\/span><strong data-sfre-out=\"ins\">$190<\/strong><\/li><\/ul><\/div><dl class=\"sfre-mortgage__totals\"><div><dt>Loan amount<\/dt><dd data-sfre-out=\"loan\">$520,000<\/dd><\/div><div><dt>Total interest<\/dt><dd data-sfre-out=\"interest\">$663,231<\/dd><\/div><div><dt>Down payment<\/dt><dd data-sfre-out=\"downPct\">20%<\/dd><\/div><\/dl><div class=\"sfre-mortgage__cta\"><a class=\"sfre-p-btn sfre-p-btn--dark sfre-p-btn--lg\" href=\"#contact\" data-sfre-kind=\"contact\" data-sfre-prefill=\"Hi, I would like to get pre-approved for a mortgage for 3561 Kiaora St, Miami, FL 33133. Could you recommend a lender?\"><span class=\"sfre-p-ico\" aria-hidden=\"true\"><svg class=\"sfre-icon sfre-icon--check-circle\" width=\"18\" height=\"18\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"1.75\" stroke-linecap=\"round\" stroke-linejoin=\"round\" aria-hidden=\"true\" focusable=\"false\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"m8.2 12.3 2.6 2.6 5-5.4\"\/><\/svg><\/span>Get pre-approved<\/a><\/div><\/div><p class=\"sfre-mortgage__disclaimer\">Estimate only \u2014 not a loan offer. Taxes, insurance and rates vary; your lender will confirm the final figures.<\/p><\/div><\/div>\n\n\n<p class=\"wp-block-paragraph\">Enter the price, your down payment, the interest rate and the loan term to see your monthly payment broken down into principal and interest, taxes, insurance and HOA fees. Compare that number with the rent for a similar home in the same building or neighborhood.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Questions the calculator can\u2019t answer<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li>How long will you stay?<\/li>\n\n\n<li>How secure is your income?<\/li>\n\n\n<li>Would you invest the down payment wisely if you kept renting?<\/li>\n\n\n<li>How much do you value stability and control over your home?<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Don\u2019t forget the tax picture<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The mortgage interest deduction is less valuable than it once was, because the standard deduction is now higher. Many Miami buyers find that they no longer itemize at all. Florida has no state income tax, which helps your budget either way, but you should talk to a tax adviser before counting on any deduction.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Investors and second homes<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The calculation changes if you are buying a second home or an investment property. Lenders typically require larger down payments, the homestead exemption doesn\u2019t apply and rental income, vacancy and management costs enter the equation. Our agents can share realistic rent and occupancy figures for the buildings you are considering.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The bottom line<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Buying usually makes sense if you plan to stay at least five years, have a stable income and can comfortably afford the full monthly cost. Renting makes sense if you value flexibility, are new to Miami or expect to move. Neither choice is wrong \u2014 what matters is making it with the full picture in mind.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ready to compare real homes? Browse <a href=\"\/doorstep-elementor\/deal\/for-rent\/\">homes for rent<\/a> and <a href=\"\/doorstep-elementor\/deal\/for-sale\/\">homes for sale<\/a> in the same buildings and neighborhoods, then run each one through the calculator.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Is it better to keep renting or to buy? We break down every number behind a rent-vs-buy calculation, using a realistic Miami example.<\/p>\n","protected":false},"author":57,"featured_media":8670,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5199],"tags":[5223,5216,5222],"class_list":["post-8166","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying","tag-calculator","tag-mortgage","tag-renting"],"_links":{"self":[{"href":"https:\/\/stepfoxthemes.com\/doorstep-elementor\/wp-json\/wp\/v2\/posts\/8166","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stepfoxthemes.com\/doorstep-elementor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stepfoxthemes.com\/doorstep-elementor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stepfoxthemes.com\/doorstep-elementor\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/stepfoxthemes.com\/doorstep-elementor\/wp-json\/wp\/v2\/comments?post=8166"}],"version-history":[{"count":0,"href":"https:\/\/stepfoxthemes.com\/doorstep-elementor\/wp-json\/wp\/v2\/posts\/8166\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stepfoxthemes.com\/doorstep-elementor\/wp-json\/wp\/v2\/media\/8670"}],"wp:attachment":[{"href":"https:\/\/stepfoxthemes.com\/doorstep-elementor\/wp-json\/wp\/v2\/media?parent=8166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stepfoxthemes.com\/doorstep-elementor\/wp-json\/wp\/v2\/categories?post=8166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stepfoxthemes.com\/doorstep-elementor\/wp-json\/wp\/v2\/tags?post=8166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}