Rent vs Buy Calculator
Compare the real cost of renting against buying, and see when buying starts to pay off.
Buying monthly payment:
Net cost of renting over period:
Net cost of buying over period:
Buying is better by:
Total cost over the comparison period
Related guide: Rent vs Buy — when it matters
How to use this calculator
Enter the home price, down payment, mortgage rate, term, monthly rent, property tax, appreciation and investment return, then press Compare. Net costs for renting and buying appear side by side with a bar chart.
Worked example
Compare renting at $1,800 a month against buying a $320,000 home with 20% down at 6.5%. The buyer's PITI is near $2,000, but part builds equity instead of vanishing. The deciding factors are usually how long you stay (buying wins over ~5-7 years once costs amortize) and what your rent could otherwise earn invested.
What the result means
This calculator weighs the full financial picture: purchase costs, mortgage, taxes, maintenance and equity growth against rent and the return your down payment could earn elsewhere. It answers "which builds more wealth for me," not "which is cheaper this month."
The factors that tip the scales
- Time in the home: transaction costs are large, so short stays favor renting.
- Down payment: money used as a down payment stops earning investment returns.
- Home appreciation: modest long-run growth is a fair assumption; don't bank on a boom.
Frequently asked questions
Is buying always a better investment?
No. Over long horizons it often builds wealth, but renting plus investing the difference can win in high-cost markets or short stays. Run your real numbers before believing either side.