What is a rent vs buy calculator?
A rent vs buy calculator compares the net cost of renting with the net cost of buying after mortgage payments, taxes, insurance, maintenance, home equity, sale costs, rent increases, and investment returns.
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Rent or buy calculator
Free Rent vs Buy Calculator
A rent vs buy calculator compares the net cost of renting with the net cost of buying after mortgage payments, taxes, insurance, maintenance, home equity, sale costs, rent growth, and invested cash.
Adjust the assumptions to see whether renting or buying is cheaper over your expected time horizon, plus the first year when buying breaks even.
15 inputs
Rent, mortgage, taxes, equity, and sale costs
Break-even
Annual net cost comparison
$0
Free, private, and no signup required
Recommendation
Renting is cheaper
The lower cash commitment and invested renter balance beat the projected home equity in this scenario.
Cost difference
$206,945
Gap between the projected net cost of renting and buying.
Break-even year
Not reached
First year where buying is cheaper than renting.
Net renting cost
-$8,971
Rent paid minus invested upfront cash and monthly owner-cost savings.
Net buying cost
$197,974
Down payment, closing costs, owner costs, and sale costs minus equity.
Renting
Monthly rent and expected annual rent increases.
Buying
Home price, mortgage terms, and annual property costs.
Selling and horizon
Transaction costs, appreciation, and expected time in the home.
Ownership snapshot
Mortgage, equity, and cash outlay
Down payment
$90,000
Cash paid upfront before closing costs.
Loan amount
$360,000
Purchase price minus down payment.
Principal and interest
$2,275
Estimated fixed mortgage payment before taxes and insurance.
First-year owner cost
$3,367
Mortgage plus tax, insurance, HOA, and maintenance.
Home equity before sale
$227,945
Future home value minus remaining mortgage balance.
Selling costs
$33,207
Estimated agent, transfer, and sale costs at exit.
Year-by-year view
Net cost comparison
Negative renting cost means the invested renter balance is larger than rent paid under these assumptions.
YearRent netBuy net
1-$91,865$64,187
2-$79,657$87,513
3-$66,848$110,459
4-$53,407$133,002
5-$39,303$155,119
6-$24,503$176,785
7-$8,971$197,974
Use this result carefully
The calculator compares financial assumptions only. Job stability, school districts, mobility, repair risk, and emotional preference still matter before signing a lease or making an offer.
FAQ
Rent vs buy questions
How do I know whether renting or buying is cheaper?
Compare the net cost over the time you expect to stay. Buying often improves with a longer horizon because equity and appreciation have more time to offset transaction costs.
Why does the calculator include investment return?
Renters can invest cash that would otherwise go to a down payment, closing costs, or higher monthly owner costs. That opportunity cost can materially change the comparison.
Should I include HOA and maintenance?
Yes. HOA dues, repairs, maintenance, taxes, and insurance are real ownership costs and should be included alongside the mortgage payment.
Is buying always better if I can afford the payment?
No. Buying can still cost more if you move soon, pay high transaction costs, face high rates, or would earn strong returns by investing the cash instead.