How does the rent vs buy calculator decide which is cheaper?

It estimates your total net cost of buying over the years you plan to stay (down payment, closing costs, mortgage payments, property tax and maintenance, minus the equity you walk away with after selling) and compares it with the total rent you would pay over the same period. The lower number is the cheaper option.

Why does buying include the equity I build up?

When you sell, you recover the home value minus the remaining loan balance and selling costs. That equity offsets what you spent, so the calculator subtracts it from your buying cost to give a fair net comparison against renting.

Is this a complete financial analysis?

No. It is a simplified estimate. It does not model income tax deductions, mortgage insurance, HOA fees, or the investment return you might earn on your down payment if you kept renting. Treat the result as a rough guide.

Rent vs Buy Calculator — Should You Rent or Buy a Home?

Rent vs Buy Calculator

See whether renting or buying is cheaper over the years you plan to stay — comparing your total mortgage, taxes, maintenance and selling costs against total rent, right in your browser.

Home price ($)

Down payment (%)

Mortgage APR (% / year)

Loan term (years)

Monthly rent ($)

Years you will stay

Home appreciation (% / year)

Property tax (% of price / year)

Maintenance (% of price / year)

Annual rent increase (%)

Closing costs (% of price)

Selling costs (% of sale)

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Total cost to buy

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Total cost to rent

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Cheaper option

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Estimated savings

Simplified estimate only — it ignores income tax effects, mortgage insurance (PMI), HOA dues, rent deposits and the return you could earn by investing your down payment. Use it as a rough guide, not financial advice.

🔒 100% private — calculated on your device, nothing is uploaded.

How to use this rent vs buy calculator

Home price — the purchase price of the home you are considering.
Down payment — the share of the price you will pay up front, as a percentage.
Mortgage APR and term — your annual rate and the length of the loan in years (usually 30).
Monthly rent — what you would pay to rent a comparable place instead.
Years you will stay — the heart of the comparison; buying usually wins only if you stay long enough.
Appreciation, taxes, maintenance, rent increase and costs — the assumptions that shape the long-run total. The defaults reflect typical US figures, so adjust them to your market.

The results update instantly. You will see the total net cost of buying, the total cost of renting over the same period, which option is cheaper, and the estimated savings between them.

How the rent vs buy comparison works

On the buying side, the calculator adds up everything you spend: your down payment, closing costs, all the mortgage payments you make while you live there, plus property tax andmaintenance. Then it credits you back the equity you walk away with — the home's appreciated value, minus the remaining loan balance and the cost of selling. That net figure is what buying truly costs you. On the renting side, it totals every month of rent over the years you stay, growing each year by your expected rent increase. The shorter your stay, the harder it is for buying to beat renting, because up-front and selling costs are spread over fewer years.

What this estimate leaves out

Mortgage insurance (PMI): often required when you put down less than 20 percent.
Tax effects: mortgage interest and property tax deductions can lower the real cost of owning.
Opportunity cost: the return you might earn by investing your down payment if you kept renting.
HOA dues, insurance and deposits: real-world costs that vary widely by location.

Frequently asked questions

How does it decide which is cheaper?

It compares your total net cost of buying over the years you plan to stay against the total rent you would pay in the same period. The lower number wins, and the difference is shown as your estimated savings.

Why does buying credit back my equity?

When you sell, you recover the home's value minus the remaining loan balance and selling costs. That equity offsets your spending, so it is subtracted from your buying cost for a fair comparison.

Is this a full financial analysis?

No — it is a simplified estimate. It leaves out PMI, tax deductions, HOA fees and the investment return on your down payment. Use it as a starting point, not financial advice.

Is my data uploaded?

No — everything is calculated in your browser and nothing is sent anywhere.

This tool is a simplified estimate for general information only and is not financial advice.