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Rent vs Buy Calculator

Compare the true total cost of renting vs buying over time — including opportunity cost, maintenance, taxes, and home appreciation.

Buying often wins long-term, but only after 5–7 years. A $400,000 home with 10% down at 7% mortgage rate has a total monthly cost of ~$3,400 including taxes and maintenance — compare this to your rent to see which option wins at your time horizon.

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Rent vs Buy Calculator
Home price · Down payment · Mortgage rate vs Monthly rent · Years to compare
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Buying scenario

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Renting scenario

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After 10 years

Buying
Monthly mortgage payment
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Total monthly cost (incl. taxes)
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Total cash out
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Home value at end
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Net equity (home − mortgage)
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Net cost (cash out − equity)
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Renting
Starting monthly rent
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Final year monthly rent
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Total rent paid
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Down payment grown (invested)
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Net cost (rent − investment gain)
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How it's calculated

True total cost comparison: buying vs renting

Buying net cost = Total cash out − Net equity gained Cash out = Down payment + Closing costs + Mortgage payments + Taxes & maintenance − Mortgage principal reduction Net equity = Home value − Remaining mortgage Renting net cost = Total rent paid − Investment gain on down payment Total rent = sum of monthly rents (growing at rent increase rate) Opportunity cost = Down payment × (1+invest_rate)^years − Down payment
  1. 1
    Net cost of buying (after equity)
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  2. 2
    Net cost of renting
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  3. 3
    Home equity built
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Opportunity cost
The return you forgo by using your down payment for a home instead of investing it. Critical to include for a fair comparison.
Price-to-rent ratio
Home price ÷ annual rent. Under 15 favors buying; above 20 may favor renting.
Break-even point
The number of years after which buying becomes cheaper than renting on a net basis.

🔢 Worked example

A $400,000 home with $80,000 down, versus renting at $1,800 and investing the difference. Over 10 years, if the home appreciates 4% a year, buying tends to build more wealth; but if your investments return 8% and rent stays low, renting can win. Two numbers decide it: home appreciation vs investment return.

Disclaimer: simplified model. Does not include all tax implications (mortgage interest deduction, capital gains exclusion), closing costs, or the emotional/lifestyle value of ownership. Consult a financial adviser and real estate professional for your specific situation. Always confirm with an official source before deciding.

Frequently asked questions

Is it better to rent or buy?
Depends on: time horizon (shorter favors renting), local price-to-rent ratio, down payment opportunity cost, and expected appreciation. In most US markets, buying wins after 5–7 years. In high-cost cities with P/R ratios of 25+, renting can win even long-term.
What costs do buyers miss?
Closing costs (2–5% of price), property taxes (~1.2%/yr nationally), homeowner's insurance, HOA fees, and maintenance (budget 1–2%/yr). Plus the opportunity cost of the down payment. These can add $1,000+/month to the true ownership cost.
What is the price-to-rent ratio?
Home price ÷ annual rent. Under 15: strong buy signal. 15–20: neutral. Over 20: renting may be better. San Francisco, NYC, Boston are often 25–40+. Midwest and South cities are often 10–15. Calculate yours: current rent × 12 = annual rent; divide into home prices in your area.
How much down payment do I need?
3% minimum for conventional loans (first-time buyers with strong credit); 3.5% for FHA loans; 20% to avoid PMI (Private Mortgage Insurance, typically 0.5–1.5%/yr). 20% down is ideal but not always required — run the numbers for your scenario.
How long until buying is cheaper than renting?
The break-even point is when cumulative buying costs (mortgage interest, taxes, maintenance, closing costs minus home appreciation and equity built) equal cumulative renting costs. Typically 4–8 years in most US markets.
Are my results saved? Do I need an account?
No account or sign-up needed. Every calculation is saved automatically in your own browser, and you can also pin a result with the save button. Nothing is sent to any server: the data stays on your device and can be erased at any time with the clear button.
How do I track my progress over time?
From the fourth entry onward a “View comparison chart” button appears, opening a line chart with every entry in time order plus an indicator panel: total change, average per entry, lowest and highest value and the period covered. You can also export the history as CSV.

About this calculator

This rent vs buy calculator compares two paths to building wealth on the same footing: how much you end up with under each scenario over the time frame you choose. Instead of arguing renting versus owning in the abstract, it puts a number on the outcome.

The buyer pays down a mortgage while the home appreciates; the renter invests the down payment and the monthly difference. The gap between the two final net worths tells you which path came out ahead for your assumptions — and adjusting rent, price, appreciation, or return shows how sensitive that answer is to the inputs you can’t be sure about.

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By Vinicius Fonseca · Reviewed against official sources · Updated Aug 2026 · How we calculate →