Rent vs Buy Calculator

Example scenario

Over 7 years, paying $2,000 rent with 3% annual increases may total about $185,000, while buying a $350,000 home with a $70,000 down payment at 6.

Sample inputs

Comparison period (years): 7
Home price ($): 350000
Down payment ($): 70000
Mortgage interest rate (%): 6.5

Sample results

Total rent cost ($): See calculator result
Total buy cost ($): See calculator result
Buy vs rent difference ($): See calculator result

Common mistakes

Misunderstanding: Does buying build equity — Yes, mortgage payments reduce your loan balance and can build equity.
Misunderstanding: What ownership costs should I include — The ownership cost percentage typically covers property taxes, insurance, maintenance, and repairs.
Using default inputs without adjusting them to match your rent vs buy calculator scenario.
Treating this estimate as a final number without checking real estate assumptions that apply to your situation.

Decision guide

Deciding whether to rent or buy depends on how long you plan to stay, local market conditions, and ongoing costs. Use the result as a planning checkpoint — not a substitute for professional advice where rules are complex.

Trust the projection more when

Enter how many years you want to compare
Enter the home price, down payment, mortgage rate, and loan term
Enter your current monthly rent and expected annual rent increase

Revisit inputs when

Enter annual ownership costs as a percentage of home value (maintenance, taxes, insurance)
Review total rent cost, total buy cost, and the difference
Your jurisdiction, tax status, or contract terms differ from the example.

Deciding whether to rent or buy depends on how long you plan to stay, local market conditions, and ongoing costs. This calculator compares total renting and homeownership costs over a chosen time horizon.

How to use this calculator

Enter how many years you want to compare.
Enter the home price, down payment, mortgage rate, and loan term.
Enter your current monthly rent and expected annual rent increase.
Enter annual ownership costs as a percentage of home value (maintenance, taxes, insurance).
Review total rent cost, total buy cost, and the difference.

Formula

Total rent cost sums monthly rent with annual increases over the comparison period. Total buy cost includes down payment, mortgage payments, and annual ownership costs as a percentage of home value. The difference shows which option costs less over the period.

Example

Over 7 years, paying $2,000 rent with 3% annual increases may total about $185,000, while buying a $350,000 home with a $70,000 down payment at 6.5% plus 2% annual ownership costs may total a different amount depending on mortgage payments.

Frequently asked questions

Does buying build equity?

Yes, mortgage payments reduce your loan balance and can build equity. This calculator focuses on total out-of-pocket costs rather than resale value or equity gained.

What ownership costs should I include?

The ownership cost percentage typically covers property taxes, insurance, maintenance, and repairs. Adjust it to reflect your local market and property type.