Rent vs Buy Calculator
Compare the long-term financial outcome of renting and buying a home, including mortgage, appreciation, rent growth, taxes, maintenance, and opportunity cost.
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Frequently asked questions
- How does the rent vs buy calculator compare the two options?
- It simulates both choices month by month. Buying builds home equity and may create owner investments when ownership costs less than rent. Renting invests the down payment and buying costs plus any monthly savings when rent costs less than ownership. At the end, it compares the owner's sale proceeds and investments with the renter's investment balance.
- What costs are included for homeowners?
- The estimate includes the mortgage payment, property tax, maintenance, buying costs, and selling costs. Home insurance, HOA fees, tax deductions, mortgage insurance, renovations, and local transfer taxes are not modeled separately, so adjust the available percentages or treat the result as a starting point.
- Why does investment return matter?
- A renter can invest cash that would otherwise go toward a down payment and higher ownership costs. A higher assumed investment return can therefore improve the renting scenario. The calculator also credits the owner when ownership costs are lower than rent.
- Does the calculator find the exact break-even year?
- It compares the options at the number of years you enter. Change the years before moving to test different horizons and identify when the result changes from renting to buying or vice versa.
- Is buying always better over a long period?
- No. A longer stay reduces the impact of transaction costs, but the result still depends on home appreciation, financing rates, rent growth, maintenance, taxes, and alternative investment returns.
- Are the results financial advice?
- No. This is an illustrative planning model. Actual taxes, insurance, financing, market returns, repairs, and selling costs vary. Confirm major housing decisions with qualified local professionals.