Finance category
Mortgage, loan, investing, tax, and money calculators.
Rent vs Buy Calculator
Compare the full cost of renting versus buying, including home equity, appreciation, taxes, maintenance, HOA dues, and the return you could earn by investing the difference.
Rent scenario
Model your monthly rent and how it rises over time.
Buy scenario
Estimate mortgage payments, ownership costs, and appreciation.
Time horizon
Compare outcomes over 10 years.
Verdict
Renting saves you $170,806 over 10 years.
This comparison factors in housing costs, home equity growth, and investing the renter's monthly savings.
Total cost of renting
$333,160
Net after investments: $14,813
Total cost of buying
$515,194
Net after equity: $185,619
Renter investment value
$318,347
Assumes 7.0% annual return
Homeowner equity
$329,575
No breakeven within selected horizon
Monthly cost comparison
Renting, month 1
$2,425.00
Buying, month 1
$3,400.44
Renting, final year average
$3,156.46
Buying, final year average
$3,699.84
Net wealth comparison
How to Use
- Enter your current rent, expected annual rent increase, and renter's insurance cost.
- Add the home purchase details, including price, down payment, mortgage rate, loan term, taxes, insurance, HOA dues, maintenance, and appreciation assumptions.
- Choose the investment return rate you expect a renter could earn by investing savings instead of buying.
- Use the time horizon slider to compare outcomes from 1 to 30 years and review the verdict, total costs, and breakeven year.
Frequently Asked Questions
Is renting or buying better financially?
It depends on your timeline, local housing costs, mortgage rate, appreciation, maintenance costs, and how consistently you invest the savings from renting. Buying often wins over longer periods, but renting can be cheaper and more flexible in the short term.
What costs matter most when comparing rent and buy?
The biggest drivers are rent growth, mortgage interest, property taxes, maintenance, home appreciation, and the return you could earn by investing your down payment and any monthly savings. Leaving out those variables can make the comparison misleading.
What is a breakeven year in a rent vs buy calculation?
The breakeven year is the first year when buying produces a lower net cost or higher net wealth than renting, after accounting for home equity and the renter's investment balance.
Should I buy if the monthly payment is higher than rent?
Not always. A higher monthly payment may still make sense if you plan to stay long enough to build equity and benefit from appreciation. But if you need flexibility or expect to move soon, renting may remain the better financial choice.
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