Skip to content

Finance · free · no sign-up

Rent vs. Buy Calculator

Compare the long-term cost of renting with buying a home, including interest, tax, maintenance and possible price growth.

How it works Report a problem

Rent vs Buy Calculator

Financial comparison over time to see which option saves you more

Buying is better
$0
Total Savings over 10 years
Cost of Renting
Total Rent Paid$0
Renter's Ins./UtilitiesIncluded
Opportunity Cost$0
Total Renting Cost$0
Cost of Buying
Mortgage Interest$0
Taxes & Maint.$0
Equity Gained$0
Total Buying Cost$0
Cumulative Cost Comparison

About the Rent vs. Buy Calculator

Compare the long-term cost of renting with buying a home, including interest, tax, maintenance and possible price growth.

How to use the Rent vs. Buy Calculator

  1. Enter your Monthly Rent and the purchase details: Home Price, Down Payment, Interest Rate and Loan Term.
  2. Enter the Analysis Period, Property Tax, Maintenance and Home Appreciation percentages.
  3. Press Compare Rent vs Buy.

Formula and method

Buying costs = mortgage payments + property tax + maintenance + lost investment return on the down payment, minus equity built and the home's value growth. Renting costs = rent (usually rising each year).

When to use the Rent vs. Buy Calculator

  • Deciding whether to keep renting or buy a home.
  • Seeing how long you would need to stay in a house for buying to pay off.
  • Comparing the true monthly cost of owning with rent.

Common mistakes to avoid

  • Comparing rent only to the mortgage payment. Owners also pay tax, insurance and maintenance.
  • Assuming house prices always rise.
  • Leaving out the cost of selling, which can be several percent of the price.

Tips

  • Buying usually wins only if you stay for several years.
  • Selling costs of 5 to 8 percent can erase early gains.
  • Renting and investing the difference can also build wealth.

Frequently asked questions

How long should I stay for buying to make sense?
Commonly five years or more, but it depends on prices, rates and rents in your area.
How long should I stay in a home for buying to make sense?
Many people suggest at least five years because buying and selling costs take time to recover.
What else should I consider?
Job stability, flexibility, and what you would do with the deposit if you rented and invested it instead.