Homeowner tool
Rent vs. Buy Calculator
Compare renting and buying over the years you actually plan to stay — including transaction costs, which decide the answer more often than the monthly payment does.
Assumptions
- Net cost of buying—
- Total rent paid—
- Difference—
- Estimated home value at sale—
- Net proceeds after selling costs—
- Remaining loan balance—
Estimates are for educational planning only and are not an offer of credit, a quote, or financial advice. Actual figures depend on your lender, credit profile, loan program, location, and current market conditions. Property tax rates, insurance premiums, and mortgage insurance costs vary widely. Confirm all numbers with a licensed lender before making a decision. This comparison does not model investment returns on the cash a renter would not have spent on a down payment, income tax effects, or rent concessions. It is a directional comparison, not a financial plan.
How this calculator works
- Buying costs accumulate the down payment, closing costs, and every monthly payment including taxes, insurance, and maintenance.
- At the end of the period, the home is assumed sold at the appreciated value, less selling costs and the remaining loan balance. Those net proceeds are subtracted from total buying costs.
- Renting costs accumulate rent, increasing annually at the rate you set.
- Short holding periods usually favor renting because transaction costs are front-loaded and paid twice.
Frequently asked questions
How long do I need to stay for buying to make sense?
Commonly five to seven years, though it varies enormously with local price-to-rent ratios, appreciation, and transaction costs. Adjust the years slider to find your breakeven.
Does this account for investing the down payment instead?
No. A renter who invests the difference may do better than this comparison suggests, depending on returns.
Disclaimer. Estimates are for educational planning only and are not an offer of credit, a quote, or financial advice. Actual figures depend on your lender, credit profile, loan program, location, and current market conditions. Property tax rates, insurance premiums, and mortgage insurance costs vary widely. Confirm all numbers with a licensed lender before making a decision.