Rent vs Buy Calculator

Compare the true cost of renting versus buying a home over time. Includes appreciation, investment returns, and equity.

Home Price

Down Payment

Mortgage Rate (%)

Monthly Rent

Annual Rent Increase (%)

Home Appreciation (%/yr)

Time Horizon (years)

Annual Maintenance (%)

Typical: 1% of home value per year

Buying is Cheaper Over 10 Years

Save $9,968.97

🏠 Buying

Monthly mortgage$1,769.79

Home value in 10yr$470,370.73

Equity built$232,997.58

Net cost$125,704.56

🏢 Renting

Starting rent$1,500.00/mo

Total rent paid$206,349.83

Investment growth$70,676.30

Net cost$135,673.53

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The Real Math Behind Rent vs Buy

Most rent-vs-buy debates ignore the opportunity cost of the down payment. If you rent, that $50,000 down payment could earn 7% annually in the stock market. Our calculator accounts for this, plus maintenance, taxes, and appreciation.

When Renting Wins

Renting often wins in expensive markets, for short stays (under 5 years), during high-interest-rate periods, and when maintenance costs are high. The flexibility to move without selling is also valuable for career mobility.

Frequently Asked Questions

Is it cheaper to rent or buy?

It depends on your local market, how long you'll stay, interest rates, and investment returns. In many markets, buying becomes cheaper after 5-7 years due to equity building and fixed payments. Our calculator runs the full comparison.

What assumptions does this calculator make?

It assumes the down payment would be invested in the stock market if renting (7% average return), accounts for home appreciation, property taxes, maintenance, and annual rent increases.

How long should I plan to stay for buying to make sense?

Generally 5+ years. Closing costs (2-5% of the price) and the slow equity build in early years mean selling within 3 years often favors renting.