Rent vs Buy Calculator
Compare renting and buying across monthly costs, equity, appreciation, and investment opportunity cost.
Last reviewed: June 2026Renting Costs
Buying Costs
About the Rent vs Buy Calculator
This calculator compares the cost of renting and buying over a selected time horizon. It is built for scenario testing: change rent, expected rent increases, home price, down payment, mortgage rate, property taxes, insurance, HOA dues, maintenance, home appreciation, and investment return to see which path has the lower modeled net cost.
The comparison uses a monthly simulation. The buyer side calculates principal and interest on the mortgage, then adds property tax, insurance, HOA dues, and maintenance. The home value appreciates once per year and equity is calculated as appreciated home value minus the remaining loan balance. The renter side pays rent plus renter insurance. The down payment is treated as invested instead of being used to buy the home, and any monthly savings from renting are also added to the renter investment account.
Reading the Results
Total spent is cash paid during the period. It does not give credit for equity or investment growth. Net cost is the more useful comparison because it subtracts wealth built from the cash spent. The buyer's wealth is home equity. The renter's wealth is investment growth on the down payment and monthly cost difference. The verdict chooses the lower net cost at the end of the analysis period.
With the default inputs, renting is lower cost over seven years because the buyer pays materially higher monthly ownership costs and does not have enough time for equity and appreciation to offset the renter's invested down payment and monthly savings. A longer holding period, lower mortgage rate, lower purchase price, stronger appreciation, or lower maintenance rate can move the result toward buying.
Costs This Page Models
- Rent and renter insurance.
- Annual rent increases.
- Down payment opportunity cost and investment return.
- Mortgage principal and interest using the loan term and rate.
- Property tax as a percentage of home value.
- Home insurance, HOA dues, and maintenance.
- Home appreciation and remaining loan balance.
Costs to Verify Separately
The CFPB notes that buying a home involves costs beyond the listing price, including borrowing costs, fees, transfer taxes, and property taxes. This calculator includes property tax and a generic transfer-tax-like input only on the seller net sheet, but it does not have separate fields for buyer closing costs, seller closing costs when you eventually sell, mortgage points, private mortgage insurance, inspection fees, title fees, local transfer taxes, utilities, moving expenses, or income-tax effects. If any of those are meaningful in your market, add a conservative amount to the buying side or compare this page with a closing-cost worksheet.
Practical Sensitivity Checks
Run at least three versions before making a decision. First, test your base case with realistic local rent and home prices. Second, test a downside case with lower appreciation, higher maintenance, and a higher mortgage rate. Third, test a longer holding period. Rent-vs-buy decisions are highly sensitive to how long you stay in the home, because buyer transaction costs and early mortgage interest are front-loaded while equity growth takes time.