Rent vs. Buy Calculator
Compare the true long-term cost of renting versus buying a home. Accounts for equity growth, appreciation, opportunity cost of your down payment, and all carrying costs over your chosen time horizon.
R Renting
B Buying
Enter rent and home price to compare
Fill in both renting and buying details above.
After — Years
—
—
Net Cost to Buy
—
After equity recovered
Net Cost to Rent
—
After investment gains
Break-Even Year
—
Buying cheaper after this year
Home Equity at End
—
After selling costs (~6%)
Final Home Value
—
After appreciation
Monthly Mortgage
—
Principal + interest
Cumulative Net Cost Over Time
Lower line = better financial outcome
Year-by-Year Breakdown
| Year | Buy Net Cost | Rent Net Cost | Home Value | Equity |
|---|
What This Calculator Accounts For
Most rent vs. buy comparisons only look at mortgage payment vs. rent. That's misleading. This calculator accounts for the full financial picture on both sides:
Buying includes:
- → Mortgage P&I + property tax + insurance
- → Annual maintenance (1% of home value)
- → Upfront buying & selling transaction costs
- → Equity and appreciation offset against costs
Renting includes:
- → Monthly rent + annual rent increases
- → Investment return on down payment capital
- → No maintenance, no transaction costs
Renting vs. Buying in the US
The median US homeowner stays in their home for about 7 years before selling or refinancing. At high mortgage rates (above 6.5%), the break-even point often extends to 5–8 years — meaning renting may be more cost-effective for shorter time horizons.
Key factors that favor buying:
- Planning to stay 7+ years in the same area
- Home prices expected to appreciate above inflation
- Rent increases rapidly in your market
- You value stability, customization, and building equity