Rent vs. Buy Calculator
Adjust the inputs below. Results update as you type.
How it works
Rent vs buy is a cash-flow and opportunity-cost question, not only a monthly payment comparison. Buying introduces mortgage P&I, taxes, insurance, maintenance, closing costs, and equity buildup; renting introduces rent growth and frees capital that could otherwise be invested.
Enter rent, expected rent increases, home price, down payment, rate, ownership costs, expected home appreciation, and how long you expect to stay. Short horizons often favor renting once transaction costs are included; longer horizons can favor buying if you can sustain reserves and the all-in ownership cost fits income. Opportunity cost of the down payment matters: money locked in equity is money not compounding elsewhere under your assumed return.
Treat appreciation and investment returns as assumptions to stress-test, not forecasts. Local taxes, HOA fees, and repair risk vary widely. Use this page to frame the decision, then validate with lender quotes, inspection realities, and a housing budget that includes maintenance—not only P&I.
Input guidance
- Rent should include required fees you actually pay each month.
- Ownership inputs need tax, insurance, and maintenance—not only mortgage P&I.
- Horizon (years you will stay) drives whether closing costs can be amortized.
The formula
Compare the total cost of renting (rent plus renters insurance, growing with inflation) against owning (mortgage, taxes, insurance, maintenance) minus equity built and any appreciation, over your expected stay.
Worked example
Buying often wins if you stay 5–7+ years, because equity and appreciation offset transaction costs; renting can win for shorter stays where buying and selling fees dominate.
More examples to test
- 5-year stay with 5% down vs 10-year stay with 20% down: compare all-in cost after selling costs.
- Raise maintenance and flat appreciation to zero to stress-test the buy case.
How to interpret results
Short stays often favor renting after transaction costs; longer stays can favor buying if reserves and payment fit. Opportunity cost of the down payment is part of the answer.
When this can be inaccurate
Appreciation, rent growth, and investment returns are assumptions. Local taxes, HOA, and repair shocks vary widely.
Change history
- July 2026: Emphasized opportunity cost of down payment and short-horizon transaction costs.
- June 2026: Ownership vs rent cash-flow model reviewed.
Site-wide corrections also appear on the corrections log.
Frequently asked questions
When does buying beat renting?+
Generally the longer you stay. Buying has large upfront and selling costs, so a longer horizon spreads them out and lets equity and appreciation accumulate.
What costs do buyers underestimate?+
Maintenance, property tax, insurance, closing costs, and selling fees. These can offset the 'building equity' advantage over short stays.
Is renting throwing money away?+
Not necessarily. Renting buys flexibility and avoids maintenance and market risk; the freed-up cash can be invested elsewhere.
How should I use this result?+
Treat it as a planning estimate. Compare at least two realistic scenarios, then confirm with statements, quotes, or a qualified professional before acting.
How often should I refresh assumptions?+
Refresh whenever rates, income, costs, or policy limits change materially, and before making irreversible commitments.
Guided next steps
Want the full workflow? Use this calculator inside a step-by-step guide.