Rent vs Buy Calculator
Compare the true long-term cost of renting vs buying — including mortgage, taxes, equity, opportunity cost, and break-even year.
🏠 Buying a Home
Build equity over time, fixed payments, appreciation upside — but higher upfront costs.
🔑 Renting
Flexibility, lower upfront costs, no maintenance — but no equity and rising rent.
🏠 Home Purchase Details
Buying costs & assumptions
PURCHASE
ANNUAL OWNERSHIP COSTS
GROWTH
🔑 Rental Details
Renting costs & assumptions
MONTHLY COSTS
UPFRONT COSTS
INVESTMENT ASSUMPTIONS
Down payment invested at this return — models the opportunity cost of renting instead of buying.
TAX ASSUMPTIONS (OPTIONAL)
Buy Wins Over 10 Years
Buying and investing the difference saves $122,408 over 10 years compared to renting.
Break-Even Year
Year 1
when buying becomes cheaper
Future Home Value
$537,567
at end of horizon
Equity Built
$266,283
principal + appreciation
Investment Growth
$165,241
down payment invested
🏠 Total Cost of Buying
- Mortgage Payments
- $242,714
- Property Tax + Insurance
- $75,947
- Maintenance + HOA
- $47,231
- Upfront + Selling Costs
- $40,254
- Less: Home Equity Gained
- −$266,283
- Net Cost of Buying
- $87,484
🔑 Total Cost of Renting
- Rent Payments
- $275,133
- Renter's Insurance
- $12,000
- Deposit + Upfront
- $4,000
- Less: Investment Return
- −$81,241
- Net Cost of Renting
- $209,892
📈 Cumulative Net Cost: Renting vs Buying Over Time
- Buying Net Cost
- Renting Net Cost
📋 Year-by-Year Comparison
| Year | Buy Net Cost | Rent Net Cost | Difference | Better |
|---|---|---|---|---|
| 1 | -$57,837 | $23,320 | +$81,157 | Buy |
| 2 | -$43,946 | $42,948 | +$86,895 | Buy |
| 3 | -$30,344 | $62,878 | +$93,222 | Buy |
| 4 | -$17,048 | $83,100 | +$100,148 | Buy |
| 5 | -$4,075 | $103,605 | +$107,680 | Buy |
| 6 | $8,556 | $124,380 | +$115,825 | Buy |
| 7 | $20,823 | $145,413 | +$124,590 | Buy |
| 8 | $32,707 | $166,688 | +$133,982 | Buy |
| 9 | $44,184 | $188,188 | +$144,004 | Buy |
| 10 | $87,484 | $209,892 | +$122,408 | Buy |
Price-to-Rent = Home Price ÷ Annual Rent — your inputs give a ratio of 16.7.
Rent vs Buy: Making the Right Decision
Deciding whether to rent or buy is one of the biggest financial choices most people make, and it rarely comes down to a single number. Our rent vs buy calculator models both paths completely — mortgage payments, taxes, maintenance, selling costs, equity built, and what your money could have earned invested elsewhere — so the break-even year tells you how long you'd need to stay before buying pulls ahead. For the mortgage math behind the buying side, see our mortgage calculator, house affordability calculator, and rent calculator.
✅ When Buying Wins
- You plan to stay 5-10+ years
- Strong local home appreciation
- Rising rents outpace ownership costs
- Equity compounds with appreciation
- You value fixed payment security
- You can benefit from tax deductions
🔑 When Renting Wins
- Moving within 3-5 years
- High price-to-rent ratio locally
- Career mobility or relocation is likely
- Your down payment would earn more invested
- High interest rates erode equity build-up
- Your life situation is still uncertain
📊 Price-to-Rent Ratio Guide
A quick screen before you run the full comparison above: divide a home's price by what a year of rent on a similar property would cost.
| Ratio | Signal | What It Means |
|---|---|---|
| Below 15 | Strong Buy Signal | Buying is clearly cheaper in most scenarios |
| 15 – 20 | Either Can Work | Model the full comparison — local factors matter |
| Above 20 | Renting Likely Cheaper | Short to medium term, renting usually wins |
Price-to-Rent = Home Price ÷ (Monthly Rent × 12). Plug your own numbers into the calculator above to see your live ratio underneath the year-by-year table.
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