🏠 Rent vs Buy Calculator
Compare the total cost of renting vs buying over time
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What is this tool?
The Rent vs Buy Calculator compares the total financial cost of renting versus purchasing a home over a specified time horizon. It factors in home price, down payment, mortgage interest rate, property appreciation, rent increases, and opportunity cost of the down payment to show which option is more economical.
How to use
- 1
Enter housing details
Input home price, monthly rent, down payment amount, and mortgage interest rate.
- 2
Set assumptions
Enter loan term, analysis period in years, property appreciation rate, and annual rent increase rate.
- 3
Compare results
View total costs for renting and buying, net house value, and which option saves more money.
Frequently Asked Questions
When does buying make more sense?
Buying generally wins when you plan to stay 7+ years, interest rates are moderate, and property appreciation outpaces rent growth. Short stays favor renting due to transaction costs and illiquidity.
Does this include taxes and maintenance?
This simplified model focuses on mortgage principal/interest vs rent. In reality, add property taxes (1-2% of home value), maintenance (1-3% annually), and insurance to buying costs.
What about opportunity cost of down payment?
The model accounts for opportunity cost—returns the down payment could earn if invested instead of used for a house purchase. This appears in results as "down payment investment return."