Rent vs Buy Calculator

Compare renting and buying total costs over a horizon with mortgage, taxes, and investment growth

About this calculator

The Rent vs Buy Calculator compares the total net cost of buying a home against renting over your chosen horizon. The buy side accumulates mortgage payments, property tax, insurance, and maintenance, offset by home appreciation; the rent side accumulates inflating rent, offset by investment returns on the down payment you didn't spend. It returns both net costs, a verdict, the crossover year if buying ever pulls ahead, and a year-by-year cumulative breakdown.

How to use the Rent vs Buy Calculator calculator

  1. Enter your amounts, rates and terms into the input fields.
  2. Read the result — it updates instantly as you type.
  3. Adjust the inputs to compare scenarios side by side.
  4. Copy the page URL to share the exact calculation.

Common examples

  • $400k home, $80k down, 6.5%/30 yr vs $2,000 rent over 10 yrs → buy ≈$304,372 vs rent ≈$197,761 → renting wins
  • $300k home, $60k down, 7% rate vs $1,500 rent over 7 yrs → rent ≈$101,577 vs buy ≈$163,322 → rent
  • $500k home, 2% appreciation, 8% investment return, 5-yr horizon → rent ≈$90,454 vs buy ≈$254,300

Frequently asked questions

How does the Rent vs Buy Calculator calculator work?

Enter your amounts, rates and terms, and the calculator applies the standard financial formulas to show the outcome, including intermediate figures where they help you understand the result. All arithmetic runs at high precision, so rounding errors do not build up across periods.

When would I use the Rent vs Buy Calculator calculator?

Use it when planning a purchase, loan, investment or budget, to compare options before committing, or to sanity-check figures quoted to you. It is an educational tool, not financial advice — confirm important decisions with your provider or a professional.

How accurate are the results?

The formulas are the standard ones used in finance and run at 30 significant digits internally. Real products may differ in fees, compounding conventions and rounding rules, so treat the result as a close estimate rather than a contractual figure.

Can I share a specific calculation with someone else?

Yes. Every value you enter updates the URL, so copying the address bar and sharing the link reopens the exact same calculation for whoever clicks it.