Rent vs Buy Calculator
Compare the true long-run cost of buying a home versus renting and investing the difference.
Formula
About this calculator
A rent vs buy calculator answers one of the biggest financial questions most people face: is it actually cheaper to own a home than to keep renting? The honest answer depends on far more than comparing a monthly mortgage payment to monthly rent. This tool models both paths in full — the real cost of owning, the real cost of renting, and what happens to the money you don't spend — so you can see which one leaves you wealthier over your chosen time horizon.
On the buying side, the calculator accounts for your down payment and closing costs up front, then the ongoing burden of mortgage interest, property tax, insurance, HOA fees and maintenance. Against that it credits you with the equity you build and the appreciation of the home, minus the selling costs you'd pay when you eventually move. On the renting side, it projects rising rent over time but invests your down payment and any monthly savings at an assumed market return, because that opportunity cost is the single biggest factor people forget.
The key output is the break-even point — the month at which buying finally overtakes renting in net worth terms. Buy before that point and move too soon and renting would have left you richer; stay past it and ownership pulls ahead. Because transaction costs on a home are large, the break-even is often several years out, which is why buying rarely makes sense if you expect to move within a few years.
Every figure here is derived transparently from your inputs — no hidden assumptions about your market. The results are only as realistic as the numbers you enter, so use honest local estimates for appreciation, rent growth and investment return, and treat the output as a framework for the decision rather than a guarantee of the future.
Frequently asked questions
Is it better to rent or buy?
It depends on how long you'll stay, local prices and rents, and what return you could earn by investing instead. This calculator compares both paths on net worth so you can see which wins over your time horizon.
What is the break-even point?
It's the month at which buying overtakes renting in net worth. If you sell before then, renting and investing the difference would have left you better off; after it, owning pulls ahead.
Why does investment return matter so much?
Because a renter can invest the down payment and any monthly savings. That opportunity cost is often the deciding factor — a higher assumed return makes renting more competitive.
Does this include maintenance and closing costs?
Yes. Buying includes closing costs, property tax, insurance, HOA, maintenance and selling costs; renting includes rising rent. Leaving these out is why simple payment-vs-rent comparisons mislead.
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⚠️ This is a planning estimate based on your assumptions, not financial advice. Future appreciation, rent growth and investment returns are uncertain — results will vary from real outcomes.