Rent vs Buy Calculator
Compare the total financial cost of renting versus buying over time.
Enter your numbers and select Calculate to see results.
About This Calculator
This calculator compares the total cost of renting versus buying a home over a chosen time horizon. For buying, it accounts for your mortgage payments, property tax, insurance, and estimated maintenance, offset by home appreciation and equity built through principal payments. For renting, it projects your rent with an annual increase rate. The comparison is a net cost — lower is better for each option.
How This Is Calculated
Net Cost of Buying = Cash Paid Out − (Equity Gained − Down Payment)
- Cash Paid Out
- — Down payment + all mortgage payments + maintenance over the period
- Equity Gained
- — Estimated home value at the end minus remaining mortgage balance
Over 7 years, renting might cost $200,000 in cumulative rent, while buying could show a lower net cost once appreciation and built equity are factored in — though this depends heavily on your local appreciation rate and how long you stay.
Assumptions
- Assumes a fixed 30-year mortgage rate for the buying scenario.
- Appreciation and rent increases are projected at constant annual rates; real markets fluctuate year to year.
- Excludes property tax, homeowners/renters insurance, HOA dues, and any costs of selling the home.
- Does not account for the opportunity cost of investing the down payment elsewhere instead of buying.
Frequently Asked Questions
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Last updated January 15, 2026. Results are estimates for informational purposes only — read our disclaimer.