Rent vs Buy Calculator

See whether renting or buying works out cheaper over your planned time in the home.

How to Use This Calculator

Home price & rent — compare similar properties in your area for a fair comparison.
Down payment — expressed as a percentage of the home price.
Time horizon — how long you plan to stay. Buying usually becomes cheaper the longer you stay.
Appreciation — the assumed annual growth in home value.

Is it always better to buy?

No. Buying has big upfront costs, so renting is often cheaper if you plan to move within a few years. This tool shows the break-even point.

What costs does buying include?

Closing costs, mortgage interest, property taxes, insurance, maintenance and HOA fees. We subtract the equity you build and home value growth.

How much do closing costs run?

Typically 2–5% of the home price, covering appraisal, title, loan origination and other fees.

Why does time horizon matter?

Buying has high upfront and ongoing costs that take years to offset by equity growth. Short stays usually favor renting.

A $350,000 home with 20% down at 6.5% over 7 years, renting at $1,800/month, 3% appreciation:

Rent total: $1,800 × 84 months = $151,200
Buy net cost: interest + fees + upkeep − equity − appreciation ≈ $94,600
Verdict: buying is roughly $56,600 cheaper over 7 years