Rent vs Buy Calculator

Compare the long-term financial impact of renting versus buying with mortgage costs, rent increases, ownership expenses, equity, appreciation, and selling costs.

How to Use

  1. Enter your buying scenario, including home price, down payment, mortgage rate, and loan term.
  2. Add ownership costs like taxes, insurance, HOA, maintenance, and closing costs.
  3. Enter your renting scenario, including current rent, renter's insurance, and yearly rent increases.
  4. Set the comparison period and assumptions for appreciation, investment return, and selling costs.
  5. Review the total cost, estimated equity, net outcome, and break-even style comparison.
Scenario Snapshot
Quick comparison of monthly housing cost, ownership drag, and long-term position.
Renting Total
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Buying Total
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Estimated Equity
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Net Better Option
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Rent Better Awaiting inputs Buy Better
Time Horizon —
Mortgage P&I —
Starting Rent —
Home Value Later —
Inputs & Settings
Enter your numbers below. Results are calculated client-side with no uploads.
Time Horizon
How long you expect to stay before moving or selling.
Net position usually gives the most realistic long-term comparison.
Buying Scenario
Purchase price of the home.
Cash paid up front toward the purchase.
Annual mortgage interest rate.
Used for principal and interest calculation.
Annual property tax estimate.
Annual homeowner's insurance cost.
Monthly HOA or condo fee, if any.
Repairs, upkeep, and routine ownership expenses.
Lender fees, title, prepaid items, and related costs.
Agent fees and other selling costs at exit.
Expected yearly home value growth.
Optional line for utilities differences or added recurring costs.
Renting Scenario
Your current starting monthly rent.
Expected annual rent increase.
Annual renter's insurance cost.
Optional refundable deposit amount.
Optional line for parking, pet rent, or other rent-side recurring costs.
Set lower if you expect deductions at move-out.
Opportunity Cost & Assumptions
Estimated annual return on money not tied up in buying.
Controls how non-rent assumptions are handled in future periods.

Buying Breakdown

Loan Amount—
Monthly Principal & Interest—
Total Ownership Cash Out—
Estimated Sale Proceeds—
Estimated Net Buy Position—

Renting Breakdown

Total Rent Paid—
Renter's Insurance Total—
Other Rent Costs—
Deposit Returned—
Estimated Rent Net Position—

Comparison Summary

Best Option—
Advantage Amount—
Break-Even Signal—
Monthly Buy Housing Cost—
Monthly Rent Housing Cost—

Annual Comparison

This table is populated by the tool logic and helps show how the comparison changes over time.

Year Rent Cost Buy Cost Equity Home Value Net Difference
Enter values above to generate the annual comparison.
Show Work (step-by-step)
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Work should summarize the mortgage calculation, projected rent growth, ownership costs, equity estimate, and final comparison.

What This Calculator Compares

Quick answer: Renting is usually stronger when your stay is short or ownership costs are high. Buying becomes stronger when equity growth and appreciation outweigh the extra ownership costs.

This tool compares both the cash you spend and the estimated value you keep.

  • Loan amount: Home price − down payment
  • Monthly mortgage payment: Principal and interest based on loan amount, rate, and term
  • Total buy cost: Mortgage + taxes + insurance + HOA + maintenance + upfront costs + optional selling costs
  • Total rent cost: Rent with annual increases + renter's insurance + other rent-side costs
  • Estimated equity: Principal paid down + home value growth − selling costs
  • Opportunity cost: Estimated growth of cash that could have stayed invested instead of being tied up in buying
Results are estimates based on the assumptions you enter. Real taxes, maintenance, market appreciation, rent growth, financing, and selling costs can vary.

FAQ

Does buying always win if the home goes up in value?

No. Mortgage interest, taxes, insurance, maintenance, HOA fees, and selling costs can offset appreciation, especially over short time periods.

Why include opportunity cost?

Because money used for a down payment and closing costs could have stayed invested elsewhere. Including opportunity cost makes the comparison more balanced.

What is a break-even point here?

It is the point where the estimated net outcome of buying catches up to or surpasses renting under your assumptions.

Should utilities be included?

Only if they materially differ between renting and buying. Use the optional monthly extra fields when that matters for your situation.

Is this tool tax-advice accurate for every case?

No. This tool is for practical comparison and planning. It does not replace a lender, tax professional, or financial advisor.

Tool Info

Last updated:

Updates may include UI refinements, assumption controls, break-even presentation, and edge-case handling.