Rent vs Buy Calculator
Compare the true cost of renting against buying in the Richmond, VA metro. Includes property tax, insurance, maintenance, appreciation, and equity built — with Richmond-specific defaults and optional live mortgage rates from the Federal Reserve.
Richmond metro defaults: Property tax ~0.9% (Chesterfield/Henrico; City of Richmond ~1.2%), home appreciation ~4% annually (metro historical range 3–5%), insurance ~0.6%, maintenance ~1%. Sources: SmartAsset county data, financing analysis (March 2026), Freddie Mac PMMS.
Rent vs Buy inputs
Monthly cost (Year 1)
Renting
$2,000
per month
Buying
$3,564
P&I: $2,627
Tax + ins + maint: $938
Buying costs $1,564 more per month upfront — equity and appreciation change the long-term picture.
After 7 years
Buying beats renting in year 7. After that point, buying costs less in total (net of equity).
Total rent paid
$184K
no equity built
Total buy cost
$366K
incl. down + closing
Equity built
$183K
after 7% sell costs
Net buy cost
$183K
buy cost − equity
Buying saves $1K net over 7 years vs renting.
Year-by-year comparison
| Year | Total rent | Total buy | Equity | Net buy |
|---|---|---|---|---|
| 1 | $24K | $99K | $35K | $64K |
| 2 | $49K | $142K | $57K | $86K |
| 3 | $74K | $186K | $80K | $106K |
| 4 | $100K | $230K | $104K | $126K |
| 5 | $127K | $275K | $129K | $146K |
| 6 | $155K | $320K | $155K | $165K |
| 7★ | $184K | $366K | $183K | $183K |
★ = break-even year (net buy cost ≤ total rent paid). Equity includes appreciation minus remaining loan balance minus seller costs (7%).
This calculator provides estimates for planning purposes only. Results depend on assumptions including appreciation, maintenance, and tax rates which may differ by neighborhood and time period. Opportunity cost of the down payment and investment alternatives are not modeled. Not financial advice.