Rent vs. Buy Calculator
Rent vs Buy Inputs
Update assumptions and compare long-term cost.
Buy Details
Ownership Costs
Rent & Growth
Results Overview
Buying is cheaper over 7 years
Estimated Savings
$26,211
You save this amount by choosing buying instead of the alternative.
Net Cost Comparison
Buy Net Cost
$125,678
7 year cost
Rent Net Cost
$151,889
7 year cost
Home Equity
$201,429
Built by buying
DP Invested
$130,400
If renting
Investment Score
59
/100
Grade: C+
Risk Level: Medium
Smart Takeaways
✓Buying wins by $26,211 over 7 years based on your assumptions.
✓Monthly mortgage estimate is $2,075.51 compared with current rent of $2,200.
✓Projected home value after 7 years is $491,950.
✓Equity built from buying is $201,429 while invested down payment may grow to $130,400.
Net cost = total out-of-pocket minus equity gained for buying, or minus investment growth on the down payment for renting.
The renting vs. buying debate is never simple — the right answer depends on your local market, how long you plan to stay, the opportunity cost of a down payment, and how much rents and home values will rise. This rent vs. buy calculator models all of these factors over your chosen time horizon and gives you a concrete dollar comparison, not a rule of thumb.
What the Calculator Models
On the buying side: all mortgage payments over the period, property taxes and insurance, HOA fees, and annual maintenance costs (typically 1% of home value per year). It subtracts the equity you build — the home's appreciated value minus the remaining mortgage balance. On the renting side: total rent paid over the same period, with annual rent increases applied. It also credits the investment growth on the money you would have used as a down payment, had you invested it instead of buying.
The Opportunity Cost of a Down Payment
When you buy, you commit your down payment to the property rather than to a market investment. This calculator lets you set an expected investment return rate — typically 7-10% for a broad stock index — and models what that down payment would grow to over the comparison period. This "opportunity cost" is credited to the renting scenario, making the comparison fair rather than slanting it toward buying by default.
How the Time Horizon Changes Everything
In most scenarios, buying costs more in the first few years due to high transaction costs and the interest-heavy early years of a mortgage. As the hold period lengthens, home equity grows and the amortized transaction costs shrink relative to total housing spend. Change the "years to compare" slider to see where the break-even point falls for your numbers.
When to Revisit Your Assumptions
The result is highly sensitive to your appreciation and investment return assumptions. If you expect local home prices to rise significantly faster than the stock market, buying looks better. If you expect the reverse — or if you plan to move within 3 years — renting typically wins. Use the house affordability calculator alongside this to see if the home you're considering fits your budget before modeling the comparison.