Rent vs Buy Calculator
Compare the financial outcomes of renting versus buying a home
Calculator
Renting
Buying
Annual Rates (%)
Expected return if down payment invested
Net Cost Comparison (10 years)
Net cost = Total payments minus equity/investment value
Year-by-Year Comparison
| Year | Rent Net Cost | Buy Net Cost | Equity |
|---|---|---|---|
| 1 | -$61,852.00 | $19,494.69 | $95,576.72 |
| 3 | -$24,655.43 | $56,658.61 | $128,555.63 |
| 5 | $13,682.47 | $91,202.56 | $164,154.50 |
| 7 | $53,068.36 | $122,882.32 | $202,617.56 |
| 9 | $93,379.59 | $151,427.10 | $244,215.61 |
| 10 | $113,834.61 | $164,431.17 | $266,282.95 |
How to Use
Compare the true costs of renting versus buying a home
Enter monthly rent
Input your current or expected monthly rent payment
Input home purchase details
Enter home price, down payment, mortgage rate, and loan term
Add ownership costs
Include property tax, insurance, and maintenance rates
Set assumptions
Enter expected appreciation, rent increase, and investment return rates
Review results
Compare total costs and see the break-even point
Net Cost Comparison
Net Rent Cost = Total Rent - Investment Value Net Buy Cost = Total Payments - Home Equity
Compares total spending minus accumulated wealth for each option over your time horizon.
Frequently Asked Questions
The rent vs buy decision depends on several factors: how long you plan to stay (buying usually makes sense for 5+ years), local housing market conditions, your financial stability, and personal preferences. Consider the total cost of ownership including mortgage interest, property taxes, maintenance, and opportunity cost of your down payment.
The break-even point is when the total costs of buying equal the total costs of renting. It typically ranges from 3-7 years depending on home prices, mortgage rates, and rent levels. Before this point, renting is usually cheaper; after, buying builds equity and becomes more advantageous.
For buying: mortgage payment (principal and interest), property taxes, homeowners insurance, HOA fees, maintenance (1-2% of home value annually), closing costs, and opportunity cost of down payment. For renting: monthly rent, renters insurance, and potential rent increases. Don't forget to factor in home appreciation and equity building.
No, this is a common misconception. Renting provides flexibility, no maintenance responsibilities, and the ability to invest your would-be down payment elsewhere. If you invest the down payment at 7% return, it can often outpace home equity gains in high-cost markets or if you move frequently.