Rent vs Buy Calculator
Should you rent or buy? Compare the true financial outcome of renting vs buying a home over time. Accounts for equity, appreciation, investment returns, maintenance, and rising rents.
Buying Costs
Typically 1% of home value
Expected annual home value increase
Renting Costs
Typically 3-5% per year
Return if you invest instead of buying
Comparison Period
Enter values and click Calculate to see results
How the Rent vs Buy Calculator Works
This calculator compares the total financial outcome of buying vs renting over your chosen time period. For buyers, it tracks mortgage payments, taxes, insurance, maintenance, and equity growth through appreciation. For renters, it tracks rent payments (with annual increases) and the growth of invested savings (what you would have used for a down payment plus monthly savings).
Net Position = Assets Built - Total Costs PaidBuy= Home equity (value - mortgage) minus all housing costsRent= Investment balance minus all rent paymentsWinner= Whichever has the higher net position at the endExample Scenarios
5-Year Stay
Over just 5 years, closing costs and slow equity build usually make renting and investing the better deal.
10+ Year Stay
Over 10+ years, appreciation and rising rents usually tip the balance toward buying.
Key Factors to Consider
- Time horizon: The longer you stay, the more buying tends to win
- Local market: High-appreciation markets favor buying; expensive markets with low rent-to-price ratios favor renting
- Investment discipline: Renting only wins if you actually invest the savings
- Lifestyle value: Buying offers stability and customization; renting offers flexibility