Rent vs. Buy Calculator

Compare the total cost of renting against the net cost of buying — including mortgage, taxes, maintenance and the equity you'd build.

Renting

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Buying

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How This Comparison Works

This calculator totals what you'd actually spend renting (monthly rent, with annual increases, plus renter's insurance) over your chosen time horizon, and compares it to the net cost of buying: your total cash outlay (down payment, closing costs, mortgage principal & interest, property tax, insurance, HOA and maintenance) minus the home equity you'd walk away with if you sold at the end of the period, after selling costs.

This is a simplified model for general informational purposes — it does not model investing the cash-flow difference between renting and buying, and does not constitute financial advice. Actual costs and home values vary. Consult a qualified financial advisor for decisions specific to your situation.

Frequently Asked Questions

How does this calculator decide if renting or buying is cheaper?+

It totals everything you'd spend renting (rent plus increases, and renter's insurance) over your chosen time horizon, and compares it to the net cost of buying — your total cash outlay (down payment, closing costs, mortgage payments, taxes, insurance, HOA and maintenance) minus the equity you'd have if you sold the home at the end of that period.

Does this include investment returns on the money I'd save by renting?+

No. This calculator compares direct cash costs only — it does not model investing the difference between a lower rent payment and a higher mortgage payment (or the down payment itself) in the stock market. That opportunity cost can matter, so treat this as one input among several, not a complete financial plan.

Why does the buying side get cheaper the longer I stay?+

Upfront costs like the down payment and closing costs are one-time, so they get "spread out" over more years the longer you own the home, while home equity keeps building. This is why buying often only makes sense if you plan to stay for several years.

What is a reasonable estimate for home appreciation?+

There's no guaranteed rate — home values can go up or down. Many long-term estimates use a modest 2-4% annual appreciation rather than assuming recent hot-market gains will continue indefinitely.