Rent vs. Buy Calculator: Should I Rent or Buy?
Compare the cost of renting with the cost of buying over the years you expect to stay. Results update as you type.
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More details: assumptions
Costs are the net amount spent after counting what you get back, so a lower number is better. This simple model leaves out tax effects, changes in rents or rates, and what you might do with any monthly difference between renting and buying.
How this rent vs. buy calculator works
This calculator compares the net cost of renting with the net cost of buying over the number of years you expect to stay. For renting, it adds up your rent, which rises each year by the rate you choose. For buying, it adds up your mortgage payments, property taxes, insurance, maintenance, HOA dues, and mortgage insurance, plus your down payment and closing costs and the costs of selling later.
Buying also builds equity. When you sell, you get back the sale price minus your loan balance, and the calculator subtracts that from the cost of owning. To keep the comparison fair, it also credits renting with the interest your down payment and closing costs could earn if you did not spend them on a home.
The break-even point is the first year when owning costs less than renting. A simple model like this leaves out tax effects, changes in rents or rates, and what you might do with the monthly difference. Home values can also fall. Change the assumptions in More details to see how much the answer depends on them, and talk with a lender or advisor about your own situation.
Common questions about renting vs. buying
Is it cheaper to rent or buy a home?
It depends mostly on how long you stay, the price of the home, your interest rate, and how fast rents and home prices rise. Buying usually costs more up front and in the early years, and it tends to look better the longer you stay. This calculator compares the two using your numbers.
How long do I need to stay in a home for buying to make sense?
There is no single answer. Buying has big costs at the start and at the end, so many people need several years to make up for them. The “How it changes with time” view shows how the comparison shifts the longer you stay.
What costs do people forget when buying a home?
Property taxes, homeowners insurance, maintenance and repairs, HOA dues, mortgage insurance when your down payment is under 20%, and the costs of buying and later selling. This calculator includes all of them.
Does the calculator count what my savings could earn if I rent?
Yes. If you rent, your down payment and closing costs stay in savings, so you can enter a yearly return they could earn. Set it to 0% if you want to ignore it.
Should I buy just because my rent keeps going up?
Rising rent is one factor, but owners also face costs that can rise, such as taxes, insurance, and repairs. Try different rent increases and home price growth rates to see how much the answer changes.