Rent vs Buy Calculator
Compare simplified annual rent and ownership costs.
What this rent vs buy calculator does
Compare simplified renting and buying costs over a selected time horizon.
How to use the calculator
Enter rent, home price, down payment, financing assumptions and ownership costs. The result is sensitive to the time horizon, home-price assumptions, rent growth, maintenance and opportunity cost of the down payment.
How the calculation works
The calculator compares modeled rent payments with modeled ownership costs over the selected period. It is a simplified scenario model, not a guarantee of which choice will be cheaper.
What the result means
The number shown is best used as a planning estimate. Change one assumption at a time to see which inputs have the largest effect. For financial decisions, compare the result with current statements, lender disclosures, employer information or other authoritative records.
Important assumptions and limitations
Buying can create equity but also brings transaction costs, maintenance, taxes, insurance and market risk. Renting can provide flexibility but does not build home equity. Compare several scenarios before deciding.
Frequently asked questions
It compares rent paid over the selected period with mortgage principal-and-interest plus entered property tax and insurance over that same period.
No. Appreciation and depreciation are deliberately excluded so the result remains a simple cash-flow comparison.
The mortgage payment includes principal, but the displayed comparison does not assign a resale value or subtract remaining loan balance, so it should not be interpreted as a complete wealth comparison.
You can specify the mortgage term separately from the number of years being compared. The comparison period only determines how many payments are counted.
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