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Rent vs Buy Calculator

Buying isn't always better than renting. This calculator shows the real math — comparing total costs, equity building, and investment alternatives year by year.

How to Use This Calculator

Enter your current monthly rent and expected annual increases. Then fill in the home purchase details — price, down payment, mortgage terms, and ongoing costs. Set your expected home appreciation and investment return rates. Choose how many years to compare.

Understanding Your Results

The year-by-year comparison shows cumulative costs for both renting and buying. The breakeven year is when buying becomes cheaper overall. The equity vs investment chart shows what you'd build as a homeowner vs investing the down payment in the market. The net worth comparison at various milestones helps you see the long-term picture.

Pro Tips

  • ✓Don't assume buying is always better — in expensive markets with low appreciation, renting and investing can win.
  • ✓Factor in flexibility — renting lets you relocate easily, which can matter for career growth.
  • ✓Use conservative appreciation estimates (2-4%) rather than recent hot market returns.
  • ✓Remember selling costs (5-6% in agent commissions) eat into your equity when you eventually sell.

You Might Also Need

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Mortgage Payment

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How Much Can I Afford

Find out the maximum home price you can afford based on your income, debts, and down payment.

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Closing Costs

Estimate your closing costs with an itemized breakdown based on your location and loan type.

Frequently Asked Questions

Is it better to rent or buy a house?▼
It depends on how long you'll stay, local market conditions, your financial situation, and the rent-to-price ratio in your area. Generally, buying becomes advantageous after 5-7 years, but this varies significantly by market.
How long do you need to own a home for buying to make sense?▼
The typical breakeven period is 3-7 years, depending on closing costs, appreciation rates, and your mortgage terms. Transaction costs (closing costs, agent fees when selling) are the main reason buying doesn't make sense for short stays.
What hidden costs of homeownership does this calculator include?▼
This calculator includes property taxes, insurance, maintenance (typically 1-2% of home value annually), HOA fees, PMI if applicable, closing costs, and the opportunity cost of your down payment if it were invested instead.
How does home appreciation affect the rent vs buy decision?▼
Home appreciation builds equity for owners but also increases property taxes and insurance. If appreciation is low, the costs of ownership can outweigh equity gains. This calculator accounts for appreciation in the year-by-year comparison.
What is the opportunity cost of a down payment?▼
Money used for a down payment could alternatively be invested in stocks or other assets. This calculator compares the equity you'd build as a homeowner vs the returns you'd earn investing that money — helping you see the true cost of buying.