Compare the long-term cost of renting vs buying a home, including equity, appreciation, taxes, and maintenance.
Rates as of Q2 2025 (example)
A rent vs buy calculator compares the net cost of buying a home to the cost of renting over a chosen number of years, accounting for your down payment, mortgage payments, property tax, maintenance and insurance, home appreciation, rent increases, and the equity you build by owning. It helps answer the common question: is it cheaper to buy or to keep renting over the time you plan to stay?
For buying, the calculator tracks your down payment, cumulative mortgage payments (principal and interest), and cumulative property tax and maintenance costs each year. It then subtracts your home equity (the home's appreciated value minus your remaining mortgage balance) to get a "net cost" of buying — equity isn't a cost, since it's value you still own. For renting, the calculator simply adds up your rent payments each year, increasing annually by your chosen rent increase rate. The two totals are compared at the end of your chosen time period.
Example: For a $350,000 home with 20% down, a 6.5% mortgage rate (example rate — enter your actual rate), $1,800 monthly rent, 3% annual home appreciation, and 3% annual rent increases over 10 years, the calculator compares the net cost of buying (after accounting for equity built) to the cumulative rent paid, to show which option comes out ahead over that period. (Note: all figures in this example are for illustration purposes only and do not represent actual rates or market conditions.)
The rent-vs-buy decision depends heavily on how long you plan to stay in the home — buying typically involves significant upfront costs (down payment, closing costs) that take time to "pay off" through equity and appreciation, so renting often comes out ahead for shorter stays while buying tends to favor longer time horizons. Home appreciation and rent increase rates vary significantly by local market and over time — the 3% figures used as defaults here are example values, not predictions for any specific area (example rates used in this calculator — actual market conditions vary by location and change over time).
The net cost of buying is your down payment plus cumulative mortgage payments plus cumulative property tax and maintenance costs, minus your home equity (the home's appreciated value minus your remaining mortgage balance). Equity represents value you still own, so it offsets the costs.
No. Real estate agent commissions, closing costs on a sale, and other transaction costs are not included. These can be significant (often around 6-10% of the sale price combined) and would make buying less favorable for shorter ownership periods.
Buying involves large upfront costs (down payment, closing costs) that are "spread out" over however long you own the home. The longer you stay, the more time you have to build equity and benefit from appreciation, which is why buying often becomes more favorable over longer periods.
No — these are example rates only. Home appreciation and rent increases vary significantly by location and over time, and past trends don't guarantee future results. Use local market data where possible for a more accurate comparison.
No. Potential tax deductions for mortgage interest or property taxes (subject to eligibility and current tax law) are not included in this calculator, which could make buying relatively more favorable for some taxpayers.
If the numbers are close, non-financial factors — like how long you plan to stay, your desire for stability versus flexibility, and local market conditions — may be more important than the financial difference alone.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only. All rates and examples shown are sample values and do not reflect current or actual market rates, home values, or rent levels. Financial rules and regulations change frequently. Always consult a qualified financial advisor or real estate professional before making any financial decisions.