Rent vs. Buy Calculator

Buying isn't always cheaper than renting — and renting isn't always throwing money away. This calculator compares the true all-in cost of both paths over your timeframe, including closing costs, maintenance, appreciation, and what your down payment could have earned invested.

Home purchase

Home price $

Down payment %

Mortgage rate %

Loan term (years)

Annual property tax %

Annual insurance $

Annual maintenance % of value

Home appreciation %/yr

Buying closing costs %

Selling costs % (if you sell)

Renting

Monthly rent (comparable home) $

Annual rent increase %

Renters insurance $/yr

Assumptions

Years you plan to stay

Investment return on down payment %/yr

The opportunity-cost field estimates what your down payment + closing costs could earn if invested instead of put into the house.

Total cost of buying

Total cost of renting

Net cost of buying (all-in, minus equity gained)
Net cost of renting (rent + insurance paid)
Home value after years
Mortgage balance remaining
Equity built
Opportunity cost of down payment (if invested)

Why the simple math lies

Closing costs punish short stays. Paying ~3% to buy and ~8% to sell means the first years of ownership are deeply negative. Under ~5 years, renting usually wins.
Maintenance is real money. The 1%-per-year rule means a $400,000 home costs ~$4,000/year in upkeep — costs renters never see.
Appreciation isn't profit until you sell — and selling costs 8%.
But leverage cuts both ways: 3% appreciation on a $400,000 home with 10% down is a 30% return on your cash (before costs). That's why buying wins over long horizons.

Simplified model for education — not financial advice. It doesn't model taxes (mortgage interest/property tax deductions), PMI, HOA fees, or rent control. How much rent can you afford? pairs well with this.