Rent vs. Buy Calculator
Buying isn't always cheaper and renting isn't always throwing money away. Compare both, year by year, with your numbers.
Buying
Renting
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Estimates for planning only — not a loan offer, appraisal or tax advice. Results depend on the numbers you enter.
How the comparison works
Net cost of buying = down payment + buying closing costs + mortgage payments + property tax + maintenance + insurance/HOA + the return your upfront cash would have earned − your equity after selling costs.
Net cost of renting = total rent paid, rising each year by your rent-increase rate.
The break-even year is the first year buying’s net cost drops below renting’s.
Tips for honest inputs
- Use a conservative appreciation rate. Long-run home price growth has averaged low single digits nationally, with big local swings.
- Maintenance of about 1% of value per year is a common planning figure; older homes often run higher.
- Selling by owner can cut your future selling costs — model a lower figure and see how the break-even moves. Our commission savings calculator shows the dollars.
Ready for the next step?
If buying wins, check your budget in the affordability calculator and read the buyer’s guide to purchasing from an owner. If renting wins, browse rentals by owner and learn to avoid rental scams.
FAQ
Why does the time I stay matter so much?
Buying has big one-time costs (closing costs now, selling costs later). The longer you stay, the more years those costs are spread over and the more equity you build, so buying tends to win over longer horizons.
What is opportunity cost here?
The down payment and closing costs could have been invested instead. The calculator charges buying for the return that cash would have earned at the rate you enter.
Does this include tax benefits?
No. Mortgage interest and property tax deductions only help if you itemize, which fewer households do since the 2018 standard deduction increase. Leaving them out keeps the comparison conservative.
Keep crunching the numbers
Commission Savings Calculator
See exactly how much you keep by selling by owner vs. a traditional listing.
Seller Net Proceeds Calculator
Estimate the cash you walk away with after payoff, closing costs and concessions.
Mortgage Calculator
Monthly payment with taxes, insurance, HOA and PMI — plus a full amortization schedule.
Home Affordability Calculator
How much house your income supports using lender-style 28/36 debt ratios.
Rental Property Calculator
Cash flow, cap rate and cash-on-cash return for a rental before you buy or list it.
Closing Cost Estimator
Line-by-line closing cost estimate for buyers and sellers.
Sell-By-Owner Readiness Quiz
8 questions that tell you whether FSBO, flat-fee MLS or an agent fits you best.