Rent vs Buy Calculator
Compare the total cost of renting vs buying a home over time to make the right decision for your situation.
Buying
$
20%
0%50%
6.5%
1%12%
1.2%
0%3%
1%
0.5%3%
3%
0%8%
Renting
$
3%
0%8%
Assumptions
7%
0%12%
10 yrs
5 yrs30 yrs
Renting saves you
$65,925
over 10 years
Net Cost of Buying
$157,313
Avg $3,530/mo out-of-pocket
Net Cost of Renting
$91,388
Avg $2,293/mo rent
Cumulative Net Cost Over Time
Frequently Asked Questions
Is it always better to buy than rent?
No. Buying makes sense when you plan to stay 5+ years, have a stable income, and local buy costs are reasonable relative to rents. In expensive markets with low rent-to-price ratios, renting and investing the difference can be financially better.
What costs should I consider when buying?
Beyond the mortgage, factor in property taxes, home insurance, maintenance (1-2% of home value per year), HOA fees, closing costs, and opportunity cost of the down payment.
How does the calculator compare rent vs buy?
It calculates the total cost of renting (including rent increases and investment returns on savings) versus buying (including mortgage payments, taxes, maintenance, appreciation, and equity buildup) over your chosen timeframe.
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