Rent vs Buy Calculator

Need context? Read our mortgage and home buying guide for assumptions and strategy.

Read the guide
Home Purchase
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Renting
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Assumptions
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Mortgage Affordability Refinance Savings Goal
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Total Cost to Buy
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Total Cost to Rent
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Home Equity Built
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Monthly Mortgage

Buying Costs

Down Payment $0
Total Mortgage Payments $0
Taxes & Insurance $0
Maintenance $0

Renting Costs

Total Rent Paid $0
Future Home Value $0
Remaining Mortgage $0
Net Equity $0
Net Cost Difference $0

Rent vs buy decision guide

This calculator compares renting and buying over your chosen time horizon. The result depends on local prices, loan terms, rent growth, and how long you plan to stay.

Time horizon

Shorter stays tend to favor renting, while longer stays can favor buying if equity builds.

Upfront costs

Buying includes down payment and closing costs that renting typically avoids.

Ongoing costs

Property taxes, insurance, and maintenance are ongoing for owners and should be modeled realistically.

What the calculator includes

  • Mortgage payments, taxes, insurance, and maintenance for ownership.
  • Rent payments and annual rent increases.
  • Home appreciation and remaining mortgage balance.

Factors outside the model

  • Tax impacts and deductions vary by household.
  • Opportunity cost of the down payment depends on investment returns.
  • Personal lifestyle preferences can outweigh math-only results.

How to use the results

  • Run a conservative case and an optimistic case to see the range.
  • Adjust appreciation and rent growth to reflect local conditions.
  • Compare the break-even year, not just the final total.
Results are estimates. Local market conditions and personal preferences can change the right decision.

Rent vs buy calculator FAQ

Is it better to rent or buy a home?

The answer depends on your financial situation, how long you plan to stay, local market conditions, and personal preferences. Renting offers flexibility, while buying can build equity over time.

How long should I plan to stay to make buying worthwhile?

The break-even point depends on your costs, loan terms, and expected appreciation. Use this calculator to compare scenarios based on your time horizon.

What costs are included in home ownership?

Home ownership costs include mortgage payments, property taxes, homeowners insurance, maintenance, HOA fees if applicable, and closing costs when buying or selling.

Why do results change so much?

Small changes in appreciation, rent growth, and time horizon can materially affect the outcome. Use multiple scenarios to understand the range.