What does "net cost of owning" mean?

Everything you pay to own over your stay — mortgage payments, property taxes, insurance, HOA fees, maintenance, closing costs when you buy and selling costs when you leave, plus the return your down payment and closing costs could have earned elsewhere — minus the loan principal you paid down and any appreciation you assumed. It is what owning cost you, net, if you sold at the end of the stay.

What is the break-even year?

The first year in which the net cost of owning, if you sold then, is at or below what you would have paid in rent through that year. Before it, renting costs less; after it, owning does — on your numbers. If the lines never cross within 15 years, there is no break-even on those assumptions.

How does the homestead exemption affect the numbers?

A Florida homestead exemption lowers the taxable value of a primary residence, and the Save Our Homes cap limits increases in the assessed value to 3% a year after the first year. This calculator lets the property tax grow by at most 3% a year for that reason. The exemption itself is not deducted: enter a tax rate that reflects your county and situation, or ask the county property appraiser.

Why is homeowners insurance blank by default?

Florida premiums vary widely — roof age, construction, distance to the coast, wind coverage and whether the home needs flood insurance all change the number. A real quote, or what a neighbor pays, is far more useful than a statewide average. Flood and wind insurance can change which option comes out ahead, so do not leave it at zero.

Does this predict what my home will be worth?

No. The appreciation figure is your assumption, and prices can fall as well as rise. Try 0% and a lower rent increase to see how much the result depends on those two inputs.

Rent vs. Buy Calculator (Florida)

Compare what renting and owning would cost over the years you plan to stay, using your own numbers for the home, the loan, Florida taxes and insurance, and the rent you would pay instead.

If you buy

Home price

Down payment

Interest rate

Term

Property tax rate

Of the price, per year. Varies by county; the homestead cap applies after year one.

Homeowners insurance

Florida premiums vary widely by age of roof, location, wind and flood coverage. Use a quote or a neighbor's figure.

HOA / condo fees

Maintenance

Of the price.

Appreciation assumption

Your assumption, not a forecast. Prices can also fall; try 0 to see the result without it.

Closing costs

Includes Florida doc stamps — see the closing tax calculator.

Selling costs when you leave

Commission, doc stamps, title and repairs.

If you rent

Monthly rent

Renter's insurance

Annual rent increase

Either way

Years you plan to stay: 7

1 year15 years

Return on money not spent

What the down payment and closing costs could earn if you rented instead (your assumption).

Renting vs. owning: your estimate

Enter a home price and a monthly rent to see the comparison.

A general estimate from your own numbers — not financial, tax or legal advice. The result depends on the assumptions you enter, especially appreciation, rent increases and insurance. Talk to a licensed agent and a lender before you decide.

How it's calculated

Mortgage payment: the standard fixed-rate formula on the loan (price minus down payment) at your rate and term. Year one is split into principal and interest from the amortization schedule.
Owning: payments + property taxes + insurance + HOA + maintenance + closing costs + selling costs + the return your cash could have earned − principal paid − appreciation (your assumption).
Renting:rent, rising by your annual increase, plus renter's insurance.
Property tax grows by at most 3% a year (Florida's Save Our Homes cap on a homestead); insurance and HOA are held flat, so raise them if you expect increases.

Florida notes

A homestead exemption reduces the taxable value of a primary residence, and the Save Our Homescap limits assessed-value increases to 3% a year after the first year. The year-one bill is based on the purchase, so budget from the price, not the seller's old bill.
Deed documentary stamp tax is $0.70 per $100 of the price ($0.60 in Miami-Dade, with a surtax on some properties). See the closing tax calculator for the deed, note and intangible taxes.
Flood and wind insurance can change the answer. Lenders require flood coverage in some zones, and wind coverage is often priced separately near the coast.

A general estimate from your own numbers, not financial, tax or legal advice. No one can promise appreciation or investment returns; the results depend on the assumptions you enter. Talk to a licensed agent and a lender before you decide.

Ready to talk it through?

A licensed real-estate professional can walk you through the homes and rentals in the areas you are considering. Also try the debt-to-income calculator to see how a payment fits your budget.

Buying? Talk to a licensed agent Renting? Find a rental (954) 703-4504

Rent vs. buy questions

What does "net cost of owning" mean?: Everything you pay to own over your stay — mortgage payments, property taxes, insurance, HOA fees, maintenance, closing costs when you buy and selling costs when you leave, plus the return your down payment and closing costs could have earned elsewhere — minus the loan principal you paid down and any appreciation you assumed. It is what owning cost you, net, if you sold at the end of the stay.
What is the break-even year?: The first year in which the net cost of owning, if you sold then, is at or below what you would have paid in rent through that year. Before it, renting costs less; after it, owning does — on your numbers. If the lines never cross within 15 years, there is no break-even on those assumptions.
How does the homestead exemption affect the numbers?: A Florida homestead exemption lowers the taxable value of a primary residence, and the Save Our Homes cap limits increases in the assessed value to 3% a year after the first year. This calculator lets the property tax grow by at most 3% a year for that reason. The exemption itself is not deducted: enter a tax rate that reflects your county and situation, or ask the county property appraiser.
Why is homeowners insurance blank by default?: Florida premiums vary widely — roof age, construction, distance to the coast, wind coverage and whether the home needs flood insurance all change the number. A real quote, or what a neighbor pays, is far more useful than a statewide average. Flood and wind insurance can change which option comes out ahead, so do not leave it at zero.
Does this predict what my home will be worth?: No. The appreciation figure is your assumption, and prices can fall as well as rise. Try 0% and a lower rent increase to see how much the result depends on those two inputs.

Tell us what you need

Selling, buying, renting or moving to Florida — a licensed real-estate professional will contact you. No obligation.

Licensed brokerage

Premier Real Estate Group Inc

Broker of record Maxim Bohadana, Florida broker license BK3314523

(954) 703-4504

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