Rent vs Buy Calculator - Should You Rent or Buy a Home?

The rent versus buy decision is one of the most significant financial choices you'll make. Our comprehensive calculator goes beyond simple monthly payments to show the true long-term costs and benefits of each option, including equity building, opportunity costs, and net worth impact.

Amount or percentage you'll pay upfront
%
%
Expected annual appreciation rate (historical average is 3-4%)
Monthly
Annual maintenance as percentage of home value or monthly dollar amount (typically 1% of home value per year)

Monthly
%
Expected yearly rent increase (historical average is 2-4%)

%
Expected annual return if you invested the down payment instead (historical stock market average is 7-10%)

Enter your home purchase details including price, down payment, and mortgage terms. Add estimated costs like property taxes, insurance, and maintenance. Input your current or expected rent and annual increase rate. Choose how many years to compare and the expected investment return if you rent instead. Click Calculate to see a comprehensive comparison including break-even analysis and year-by-year projections.

For buying, we calculate the total monthly cost including mortgage principal and interest (using the standard amortization formula), property taxes, insurance, HOA fees, and maintenance. We track equity built through principal payments and home appreciation. For renting, we calculate cumulative rent costs with annual increases and model the opportunity cost by projecting investment growth of the down payment and closing costs you would have spent. The break-even point is where buying's net cost (total costs minus equity) becomes less than renting's cumulative cost.

Want to link to this calculation? Copy this example URL:
Share this link with others to show them this exact calculation