Sunk Costs

Definition

Money that has already been incurred and cannot be recovered.

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Rent vs Buy Comparison

In homeownership, sunk costs are unrecoverable expenses:

Mortgage Interest
Property Taxes
Maintenance
Insurance
HOA Fees

When renting, the entire rent payment is a sunk cost. Buying is only financially better if your recoverable equity (Savings) exceeds the difference in sunk costs.

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This tool is for illustrative purposes only and does not constitute professional financial, tax, or legal advice. Calculations are estimates and may not reflect real-world variables or local regulations. Always consult with a qualified professional before making financial decisions.