Rent vs Buy Calculator
Compare the estimated net cost of renting with the estimated net cost of buying over the number of years you expect to stay.
Comparison
Results are estimates for informational purposes only. Verify important financial, tax, real-estate or retirement decisions with a qualified professional.
How the rent vs buy calculator works
The rental side projects monthly rent with annual rent growth. The buying side models the mortgage, down payment, closing costs, property taxes, insurance, maintenance and HOA. At the end of the period it estimates the home’s sale value, selling costs and remaining mortgage balance, then credits net sale proceeds against your ownership cash outflows.
This model does not include the opportunity cost of investing your down payment or the monthly difference between renting and owning. That can materially affect a long-term rent-versus-buy decision.
How to use the result
Use the cost difference as one input, not as a verdict. Buying tends to benefit from longer holding periods because transaction costs are spread over more years, while renting often preserves flexibility and avoids repair and resale risk.
Frequently asked questions
What does the comparison include?
The buy side includes down payment, closing costs, mortgage payments, property tax, insurance, maintenance, HOA, selling costs and estimated home appreciation. The rent side includes rent growth.
Does this include the opportunity cost of the down payment?
No. The calculator compares direct cash flows and home sale proceeds. It does not model what the down payment or monthly savings could have earned if invested elsewhere.
How is home equity handled?
At the end of the comparison period, the calculator estimates the home sale value, subtracts selling costs and remaining mortgage balance, and credits the resulting net sale proceeds against the cost of buying.
Is appreciation guaranteed?
No. Home values can rise or fall. Appreciation is an assumption, not a forecast.
Should I decide based only on the lower number?
No. Flexibility, moving plans, taxes, repair risk, transaction costs and personal preferences can matter as much as the modeled cost.