Rent vs Buy Calculator

Compare the true cost of renting against buying a home over a chosen number of years. This tool goes beyond the monthly payment and accounts for home appreciation, mortgage paydown, tax benefits, selling costs, and the opportunity cost of investing your down payment instead.

Buying

Home Price ($):

Down Payment (%):

Mortgage Rate (%):

Loan Term (yrs):

Closing Costs (%):

Appreciation (%/yr):

Property Tax (%/yr):

Insurance ($/yr):

Maintenance (%/yr):

HOA ($/mo):

Selling Cost (%):

Income Tax Rate (%):

Renting

Monthly Rent ($):

Rent Growth (%/yr):

Renter's Ins. ($/yr):

Assumptions

Years to Compare:

Investment Return (%/yr):

Return on money not tied up in a home (opportunity cost).

Results

Net Cost to Buy

$0

Net Cost to Rent

$0

Difference

$0

Buying Breakdown

Down Payment	$0
Closing Costs	$0
Mortgage Payments	$0
Property Tax	$0
Insurance	$0
Maintenance	$0
HOA	$0
Tax Benefit (saved)	$0
Gross Outlay	$0
Sale Proceeds (equity)	$0
Net Cost of Buying	$0

Renting Breakdown

Total Rent Paid	$0
Renter's Insurance	$0
Gross Outlay	$0
Down Payment Invested	$0
Investment Growth	$0
Net Cost of Renting	$0

The renter invests the down payment plus closing costs — plus any month where buying costs more than renting — and earns the investment return on it. That growing balance is credited back against the cost of renting.

Year by Year

Year	Net Cost to Buy	Net Cost to Rent	Cheaper

How It Works

The headline monthly numbers rarely tell the whole story. Buying builds equity but ties up cash and carries taxes, upkeep, and selling costs. Renting is flexible and frees up your down payment to invest elsewhere. This calculator runs both paths month by month over the period you choose and compares the net cost of each.

Net cost of buying = every dollar spent to own (down payment, closing, mortgage, tax, insurance, maintenance, HOA) minus income-tax savings, minus the equity you walk away with when you sell.
Net cost of renting = every dollar of rent and renter's insurance, minus the growth of the money you would otherwise have sunk into the home — the opportunity cost of a down payment.
Equity on sale is the appreciated home value minus the remaining loan balance and selling costs.
Tax benefit approximates the deduction of mortgage interest and property tax at your marginal income-tax rate.

Formulas:

Monthly Payment = P·r / (1 − (1 + r)⁻ⁿ), where r is the monthly rate and n the number of payments
Home Value_year = Price × (1 + appreciation)^year
Sale Equity = Home Value − Loan Balance − Home Value × Selling Cost %
Invested Balance grows each month at (1 + return)^1/12, seeded with the down payment and cost gap

The break-even year is the first year where buying becomes cheaper than renting. Everything is calculated in your browser — nothing you type ever leaves your device.

Things to Keep in Mind

Favours Buying

Staying put for many years spreads fixed buying costs
Strong home appreciation builds equity fast
High rents that keep climbing each year

Favours Renting

A short time horizon before you would sell and move
High investment returns on the freed-up down payment
Steep property taxes, upkeep, or HOA fees

Related Utils

Home Affordability Mortgage Cash Flow Analyzer Closing Costs

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