Chicago rent vs buy breakeven calculator

Defaults calibrated to Lincoln Park — compare net wealth: buying vs renting and investing
Key Chicago considerations: Cook County has some of the highest property taxes in the US (~1.9% effective). IL has a flat 4.95% state income tax. Chicago charges a transfer tax of ~$10.50/$1,000 (split buyer/seller). Cook County reassesses every 3 years with a complex equalization factor. The $10k homeowner exemption is small and folded into the effective rate default.
Purchase & financing
Ownership costs
Transaction costs
Renting scenario
Appreciation & investment
Tax benefit
IL flat 4.95% state tax stacks on federal. Mortgage interest (first $750k of loan) + property tax (SALT cap $40k). Set to 0% to disable.
Breakeven year
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2-year gap
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5-year gap
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Monthly cost (buying, year 1)
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Net after roommate + tax benefit
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Buy: net wealth if sold in year N Rent: portfolio from investing instead
Year-by-year detail
Buy net = home value − loan balance − selling costs − initial cash (DP + buyer closing) + cumulative tax savings + buyer's invested surplus. Rent net = initial cash invested at portfolio return + renter's invested surplus. Both sides invest monthly surplus symmetrically. Tax benefit = marginal rate × max(0, mortgage interest on first $750k + property tax up to $40k SALT − standard deduction). Property tax assessed at market value (grows with appreciation). Cook County reassesses every 3 years with equalization; the effective rate slider approximates this. Chicago transfer tax ($10.50/$1,000) is split buyer/seller by custom and included in selling costs default. Excludes PMI if <20% down, renter's insurance (~$20/mo), and capital gains exclusion on sale ($250k single / $500k married if 2+ yrs primary residence).