Rent vs Buy Calculator
Compare the estimated cost of renting versus buying over a selected time period.
How this calculator works
How to use this calculator
Enter rent, home price, down payment, mortgage details, ownership costs, comparison period, rent growth, and home appreciation. The calculator compares estimated total rent cost with estimated net cost of buying.
Formula used
Rent cost is projected month by month with an annual rent increase. Buying cost includes down payment, mortgage payments, property taxes, maintenance, insurance, and HOA, then subtracts estimated home equity at the end of the comparison period.
Example calculation
For $1,800 rent, a $350,000 home, 20% down, 6.5% interest, 30-year term, 1.2% property tax, 1% maintenance, $250 monthly insurance/HOA, 5 years, 3% appreciation, and 3% rent growth, the result compares estimated rent cost with estimated net buying cost.
What the result means
This is a simplified comparison. Real results depend on market changes, selling costs, tax rules, repairs, opportunity cost, and how long you stay in the home.
Frequently asked questions
Does this include selling costs?
No. If you expect to sell the home, consider adding selling costs manually to the buying side.
Does this include tax deductions?
No. Tax effects vary by location and personal situation.
Is renting always cheaper for short periods?
Not always, but buying costs often need more time to offset transaction and ownership costs.