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Home & Mortgage

Rent vs. Buy Calculator

Is it cheaper to rent or buy? This calculator compares the true net cost of each over the years you plan to stay — including the equity and appreciation you’d build by owning.

Rent vs. buy

Compares the true net cost of each over your time horizon, including equity you’d build.

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years

After 7 years

Buying is cheaper by

$23,700

Buying comes out ahead over this horizon once equity and appreciation are counted.

Total cost to rent

$183,899

Net cost to buy

$160,199

Home value at end

$491,950

"Net cost to buy" subtracts the equity you'd recover at sale (after ~6% selling costs) from everything you paid in. Assumes ~3% closing, ~1.1% property tax, and ~1% annual maintenance. The longer you stay, the more buying tends to win.

The question isn't rent or buy — it's how long

Buying carries big one-time costs: the down payment, closing fees, and eventually selling costs. Spread those over two years and renting usually wins; spread them over ten, and the equity and appreciation from owning usually win. This calculator finds where your situation lands.

What "net cost to buy" means

It's everything you pay to own — down payment, closing, mortgage payments, taxes, insurance, and maintenance — minus the equity you walk away with at sale. Comparing that to total rent over the same period is the honest apples-to-apples view.

If buying wins

Check what you can afford with the affordability calculator, estimate the payment with the mortgage calculator, and budget for closing costs. If renting wins for now, put the difference to work with the investment calculator.

Related calculators

Mortgage CalculatorFull monthly payment — principal, interest, taxes, insurance, and PMI.Home Affordability CalculatorThe home price your income and debts can support.Closing Cost CalculatorEstimate the upfront fees to close on a home purchase.Refinance CalculatorBreak-even point and lifetime savings from refinancing your mortgage.

Frequently asked questions

Is it better to rent or buy?
It depends mostly on how long you’ll stay. Buying has high upfront and transaction costs, so short stays usually favor renting. The longer you stay, the more equity and appreciation you build, which tends to tip the math toward buying.
What is the break-even for buying?
Often around 3–7 years, but it varies with prices, rates, and rent levels. Below the break-even, the costs of buying and selling outweigh the equity you build. Change the “years you’ll stay” above to find your crossover point.
Does this account for equity and appreciation?
Yes. The “net cost to buy” subtracts the equity you’d recover when you sell — the home’s appreciated value minus the remaining loan and about 6% in selling costs — from everything you paid in.
What isn’t included?
It doesn’t model investing the down payment if you rented instead, or the tax treatment of mortgage interest. Treat it as a strong directional comparison, not a precise forecast.