Rent vs. Buy Calculator
Compare the true financial cost of renting versus buying a home over time.
National average rates from the Freddie Mac Primary Mortgage Market Survey. Your actual rate may vary based on credit score, lender, and location.
Results
Monthly Mortgage
$2,237.49
Net Buy Cost
$175,999.31
Total Rent Cost
$168,000.00
Recommendation over 7 years
🏢 Renting is cheaper
Bookmark this calculator
Save it for one-tap access or share it with someone who needs it.
What is a Rent vs. Buy Calculator?
The rent vs. buy calculator compares the true long-term financial cost of renting a home versus purchasing one. It accounts for factors that are often overlooked in simple comparisons, including opportunity cost of the down payment, home appreciation, rent increases, tax benefits, and transaction costs.
Buying a home builds equity over time and provides stability, but it comes with significant upfront costs (down payment, closing costs), ongoing maintenance expenses (typically 1–2% of home value per year), and reduced financial flexibility. Renting offers lower upfront costs and the ability to invest the down payment elsewhere.
The right answer depends heavily on how long you plan to stay in the area. Most financial experts suggest that buying only makes sense if you plan to stay for at least 5–7 years, enough time to recoup the transaction costs through equity building and appreciation.
How to Use the Rent vs. Buy Calculator
Compare the total cost of renting vs. buying over your expected time horizon.
- 1
Enter your home purchase details
Input the home price, down payment, mortgage rate, and loan term.
- 2
Enter your rental details
Input your current or expected monthly rent and the annual rent increase rate.
- 3
Set your time horizon
Enter how many years you plan to stay in the home or area.
- 4
Adjust investment return rate
Set the expected annual return if you were to invest your down payment instead of using it for a home purchase.
- 5
Compare the results
The calculator shows the total cost of each option over your time horizon and identifies which is financially better for your situation.
Rate this calculator
