Rent vs Buy Calculator

Compare renting versus buying using rent, home price, mortgage terms, ownership costs, and how long you plan to stay.

Compare Renting vs Buying

Renting Assumptions

Monthly Rent

Your current or expected monthly rent.

Annual Rent Increase (%)

Estimated yearly rent increase.

Renter Insurance / Other Monthly Rent Costs

Optional recurring rent-related cost.

Buying Assumptions

Home Price

Estimated purchase price of the home.

Down Payment (%)

Percent of the home price paid upfront.

Mortgage Interest Rate (%)

Expected annual mortgage interest rate.

Loan Term (Years)

Common options are 10, 15, 20, or 30 years.

Property Tax (% per year)

Estimated annual property tax as a percentage of home value.

Home Insurance / Year

Estimated yearly home insurance cost.

Maintenance Cost (% per year)

Estimated yearly maintenance cost as a percentage of home value.

Home Value Appreciation (% per year)

Estimated yearly home value growth.

Selling Cost (%)

Estimated selling costs, such as agent fees and closing costs.

Personal Assumptions

Years Planning to Stay

How long you expect to live in or hold the home.

Expected Investment Return (%)

Estimated annual return if upfront home-buying costs were invested instead.

How This Calculator Works

This calculator compares renting and buying by estimating rent payments, mortgage payments, property taxes, insurance, maintenance, home appreciation, selling costs, and the potential value of investing the down payment.

Example Scenario

Compare a 400,000 home with 20% down, a 30-year mortgage, and a 7-year stay against your rent assumptions.

Educational estimate only: Actual costs may vary by local taxes, fees, market conditions, loan terms, and personal circumstances.

Rent vs Buy FAQ

Is renting always worse than buying?

No. Renting may be more favorable if you plan to move soon, want flexibility, or if buying costs are high.

Is buying always better because of equity?

No. Buying may build equity, but it also includes mortgage interest, taxes, maintenance, insurance, and selling costs.

Why does the calculator ask how long I plan to stay?

The longer you stay, the more time you have to spread upfront costs and potentially benefit from home appreciation.

Does this include income tax deductions?

No. This simplified calculator does not estimate income tax deductions. It focuses on rent, mortgage payments, ownership costs, home value, selling costs, and opportunity cost.

Can I use this outside the US?

Yes. Enter values in your preferred currency. Results use the same currency as your input.