Rent vs Buy Calculator
Compare the true cost of renting vs buying a home over time. See the break-even point and net worth impact of your housing decision.
Understanding Rent vs Buy
This calculator compares the total cost of renting versus buying over your chosen analysis period. It accounts for:
- Rent increases — most leases increase 2-5% annually
- All homeownership costs — mortgage, taxes, insurance, HOA, and maintenance
- Closing costs — estimated at 3% of home price
- Home equity — the portion of your home you actually own through appreciation and principal payments
- Opportunity cost — the down payment you would invest if renting instead (assumed 7% return)
The break-even point is when the net cost of buying becomes lower than renting, considering both expenses and equity. Generally, buying makes more sense the longer you plan to stay.
About this Calculator
The Rent vs. Buy Calculator is a free, easy-to-use tool for housing, compare, mortgage. Simply enter your values and get instant, accurate results — no signup, no ads, no tracking. All calculations run locally in your browser, so your data stays completely private.
Privacy Note: All calculations are performed locally in your browser. No data is ever sent to a server or third party.