Rent vs Buy Calculator
Compare renting and buying over the same time horizon. The tool models rent growth, mortgage costs, home equity and the value of cash that could otherwise remain invested.
Use Rent vs Buy Calculator →How our calculator estimates workWhat the rent vs buy calculator does
The calculator simulates monthly housing costs and compares ending renter investments with buyer investments plus net home equity. It uses your rent, home price, financing, property-tax, insurance, HOA and appreciation assumptions along with several fixed comparison assumptions.
Information you can enter
- Monthly rent and annual rent increase
- Home price, down payment, APR and mortgage term
- Property tax, insurance and HOA, appreciation rate and years compared
How to use it
- Enter the rent scenario and how quickly you expect rent to increase.
- Enter the purchase, financing and ownership-cost assumptions for the home scenario.
- Compare the estimated ending net worth, difference and break-even year.
What can change the result
Buying has upfront and selling costs, so the number of years you stay can materially affect the comparison.
Higher or lower home-value growth changes the estimated equity at the end of the comparison.
Cash not used for a down payment or higher housing costs can potentially remain invested in the renter scenario.
Frequently asked questions
What does the break-even year mean?
It is the first modeled year in which the calculator estimates the buyer's net worth is at least as high as the renter's net worth.
Does the calculator include maintenance?
Yes. The current model uses a fixed maintenance assumption equal to 1% of home value per year.
Are closing and selling costs included?
Yes. The current model uses fixed assumptions of 3% buyer closing costs and 6% selling costs at the end of the comparison.