Rent vs Buy Calculator

It adds up the net cost of each path over the years you plan to stay. Renting is the total rent paid less what the cash a buyer would tie up (the down payment plus closing costs) earns if you invest it instead. Buying is the down payment, closing, mortgage payments, property tax, maintenance and HOA, plus selling costs, less the home equity you walk away with. The lower number wins.

It is the first year of your stay where buying becomes the cheaper option and stays that way. Buying carries heavy upfront and exit costs, so it usually loses in the early years and only pulls ahead once you have stayed long enough for appreciation and equity to outweigh that friction.

Closing costs are assumed at 2 percent of the price to buy and 6 percent to sell. Rent grows each year by the increase you set, and the home's value, property tax and maintenance grow with the appreciation rate. The cash a renter does not tie up is invested at the return you choose. The model ignores income taxes, the mortgage interest deduction, insurance and rent deposits, so treat it as a comparison rather than an exact forecast.

A buyer locks a large sum into a down payment and closing costs. A renter can invest that same cash. The higher the return you expect on those investments, the more valuable it is to stay liquid, which tilts the result toward renting. A higher home appreciation rate tilts it back toward buying.

Yes. Property tax and maintenance are charged each year as a percent of the home's current value, which rises with appreciation, and any monthly HOA fee is added to the cost of owning. The mortgage payment itself covers principal and interest only.

No. The calculation runs entirely in your browser, so the numbers you enter never leave your device.

No. The figures are estimates to help you compare scenarios. Confirm rates, taxes, fees and rent terms with your lender, agent and landlord before you decide.