Rent vs. Buy Calculator
This tool weighs the full cost of buying a home against the cost of renting over the years you expect to stay. It accounts for the down payment, mortgage payments, property tax, insurance, and upkeep on the buying side, then subtracts the equity you build as the home appreciates, and compares that to rent that rises over time. Move the sliders to see which choice comes out cheaper for your situation.
After 7 years, Buying costs less. Net cost of buying about $88,946 (payments and ownership costs minus the equity you build) versus $186,414 to rent.
Worked examples
Real results from this calculator, computed for a few common scenarios. Move the sliders above to run your own numbers.
| Home price = $340,000 | After 7 years, Buying costs less. Net cost of buying about $86,405 (payments and ownership costs minus the equity you build) versus $186,414 to rent. |
| Home price = $775,000 | After 7 years, Renting costs less. Net cost of buying about $196,953 (payments and ownership costs minus the equity you build) versus $186,414 to rent. |
| Home price = $1,210,000 | After 7 years, Renting costs less. Net cost of buying about $307,501 (payments and ownership costs minus the equity you build) versus $186,414 to rent. |
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How this math works
On the buying side, the calculator adds up your down payment and mortgage payments, plus property tax of about one and a quarter percent of the home value each year and insurance and maintenance of about half a percent each year. It then subtracts the equity you build as you pay down the loan and as the home appreciates around three percent a year, giving a net cost of owning. On the renting side, it sums your rent over the same period, growing it about three percent a year. The lower net figure is the cheaper path.
Time horizon is the deciding factor. Buying carries large upfront costs, so a short stay often favors renting because you have not owned long enough for appreciation and equity to outweigh those costs. The longer you stay, the more owning tends to pull ahead, though the result also swings with the rate, the price, and how much rents rise.
Common questions
What costs does the buying side include?
It includes the down payment, mortgage payments, property tax around one and a quarter percent a year, and insurance plus maintenance around half a percent a year. It then credits you the equity you build and the home appreciation, estimated at about three percent a year, to arrive at a net cost.
Why does how long I stay matter so much?
Buying has heavy upfront costs that take years to earn back through equity and appreciation. A short stay usually favors renting, while a longer stay gives ownership time to pull ahead, which is why the years slider can flip the answer.
Are these estimates exact?
No. The calculator uses typical assumptions for tax, insurance, maintenance, appreciation, and rent growth, and your real numbers will vary by location and market. Treat the result as a guide to the trade-off, not a precise prediction.
Put this calculator on your website
Bloggers, teachers, credit unions, HR teams: embed the live Rent vs. Buy Calculator free. Copy the snippet below — the tool keeps working and stays up to date automatically, no maintenance on your side.
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