🏘 Rent vs. Buy Calculator
Compare estimated net housing costs after financing, ownership expenses, rent growth, transaction costs, and the equity you could receive when selling.
Estimate excludes taxes on sale, mortgage tax deductions, investment returns on cash not used for a down payment, and moving costs. Test several assumptions before making a housing decision.
How to Use This Calculator
- Enter the Purchase and Loan Details — home price, down payment, mortgage rate, and actual loan term.
- Enter the Rental Alternative — current monthly rent and expected annual rent growth.
- Choose Years to Compare — this is independent of the loan term.
- Review Ownership Assumptions — taxes, insurance, maintenance, appreciation, and transaction costs materially change the result.
- Click Compare — compare rent paid with the buyer's net cost after estimated sale proceeds and remaining mortgage balance.
Example: 10 Years in a $400,000 Home vs. $2,000/Month Rent
You are deciding between buying a $400,000 home with 20% down at 6.5% on a 30-year loan or renting for $2,000/month.
🏠 10-Year Estimate
- Monthly mortgage (P&I): ~$2,023
- Estimated net buying cost: ~$215,000
- Estimated rent with 3% annual increases: ~$275,000
- Under the default assumptions, buying costs about $60,000 less.
Why Use This Calculator?
Hard numbers — no real estate agent spin or landlord bias.
Compare 3, 5, 7, 10, 15, or 20 years. Short timeframes often favor renting.
See exactly when buying becomes cheaper than renting.
Calculator inputs stay on this device; advertising services may process separate usage data.
Common Mistakes
❌ Comparing mortgage to rent 1:1. Property taxes, insurance, maintenance, transaction costs, and equity all matter.
❌ Assuming rents stay flat. At 3% annual growth, $2,000 rent becomes about $2,688 after 10 years.
❌ Treating the result as a forecast. Appreciation, repairs, rent growth, and selling costs are uncertain. Compare a conservative and an optimistic scenario.