Rent vs Buy Calculator

Compare renting and buying based on monthly costs, home price, and expected appreciation.

Rent

Optional

Buy

= $110,000
Optional

Time & Market

How long you plan to stay (1-40)

Results

Recommendation
Renting appears more favorable
Break-even: Not within 7 years
Renting builds $15,276 more wealth
Rent
Total Rent Paid$229,874
Investment Value$293,875
Ending Net Worth$293,875
Buy
Total Costs (Net)$103,899
Home Equity$278,599
Ending Net Worth$278,599

Estimates only. Results vary by market, taxes, insurance, and lender terms.

About This Calculator

This calculator compares the financial outcomes of renting versus buying a home over your chosen time horizon. It factors in rent growth, mortgage payments, property taxes, insurance, maintenance, home appreciation, and investment returns to help you make an informed decision.

Estimates only. Results vary by market, taxes, insurance, and lender terms.

Frequently Asked Questions

Is renting always cheaper than buying?

Not always. It depends on rent growth, home appreciation, interest rates, taxes, and how long you plan to stay. In some markets, buying can build more wealth over time.

Does this calculator include property taxes and insurance?

Yes, it estimates ongoing owner costs like property tax, insurance, maintenance, and HOA fees (if provided). These are factored into the total cost of ownership.

What are closing costs and selling costs?

Closing costs are upfront fees when buying a home (typically 2-5% of home price). Selling costs include agent commissions and transaction fees when you sell (typically 5-6% of sale price).

What is "break-even" in rent vs buy?

Break-even is the point where buying becomes financially comparable or better than renting based on your inputs. Before this point, renting may be more favorable.

How does the investment return affect the results?

If you rent, you may invest the money you would have used for a down payment (and sometimes monthly cost differences). Higher investment returns can make renting more favorable compared to buying.