Rent vs Buy Calculator
A rent vs buy calculator compares the total cost of renting to the total cost of buying a home — down payment, mortgage payments, and property tax/maintenance — over a chosen number of years, to see which is cheaper over that horizon. The number of years you expect to stay is often the single biggest lever in this comparison, since buying carries large upfront costs, like a down payment and closing costs, that only get diluted over a longer stay, while renting has almost no upfront cost but no equity-building component either.
Educational estimate only. Results are not medical, legal, or financial advice. Confirm important decisions with a qualified professional.
How it works
- Enter your monthly rent and the home price, down payment, and mortgage rate you’re comparing against.
- Enter how many years you expect to stay, and estimated annual property tax + maintenance.
- Read which option costs less over that period, and by how much.
Formula Rent cost = monthly rent × 12 × years. Buy cost = down payment + mortgage payments over the horizon + tax/maintenance
Frequently asked questions
Does this account for home value appreciation or building equity?
No — this is a simplified out-of-pocket cost comparison, not a net-worth comparison. Buying typically builds equity that renting does not, which this tool does not add back in.
Does it assume rent stays flat?
Yes, for simplicity — real rent typically rises over time, which would make buying relatively more favorable the longer the horizon.
What mortgage term does this assume?
A standard 30-year mortgage for computing the monthly payment, regardless of how many years you enter for the comparison horizon.
Why might the answer change a lot with the "years you'll stay"?
The down payment and closing-cost-style upfront costs of buying are fixed, so they matter less the longer you stay — buying tends to look better over longer horizons.
Is this financial advice?
No. It is a simplified educational comparison — a real decision also depends on your local market, taxes, and personal circumstances.