Rent vs Buy Calculator
Compare renting versus buying using estimated mortgage payments, ownership costs, rent increases, home appreciation, and break-even timing.
Understanding The Calculator Inputs
This calculator compares estimated renting costs with estimated homeownership costs over the timeframe you select. The result depends heavily on rent increases, ownership costs, loan type, appreciation, and how long you expect to stay in the home.
Current Monthly Rent
Your current monthly rent before utilities. This is used as the baseline cost of continuing to rent.
Estimated Home Purchase Price
The approximate price of the home you may buy. This affects loan amount, payment, appreciation, taxes, insurance, and maintenance estimates.
Down Payment
The amount you expect to contribute upfront toward the purchase. This affects loan amount, mortgage insurance, and opportunity cost.
Years You Expect To Stay
The number of years used for the rent vs buy comparison. Buying often becomes more favorable the longer you stay.
Advanced Assumptions
These include appreciation, maintenance, selling costs, closing costs, and investment return. They are prefilled but can be adjusted to test different scenarios.
Frequently Asked Questions
How does this rent vs buy calculator work?
It compares the estimated cost of renting with the estimated net cost of buying over the number of years you plan to stay. It uses mortgage pricing, ownership costs, rent growth, appreciation, selling costs, and estimated investment return assumptions.
What is the break-even year?
The break-even year is the estimated point where the net cost of buying becomes equal to or lower than the net cost of renting, based on the assumptions entered.
Does this tell me whether I should buy a home?
No. This calculator provides an educational estimate only. Your personal decision should also consider lifestyle, cash reserves, job stability, taxes, maintenance risk, and how long you expect to stay in the home.
