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Rent vs. Buy Calculator

Buying has upfront costs but builds equity; renting stays flexible but builds none. Compare the net cost over your time horizon.

Buy and rent assumptions

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yr
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On cash a renter invests
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Net cost of buying
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Over your time horizon
Net cost to buy—
Net cost to rent—
Home equity at sale—
Better option—
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Renting isn't throwing money away

And buying isn’t automatically smarter. Buying carries closing costs, taxes, insurance, and maintenance, but builds equity and can appreciate. Renting stays flexible and lets you invest the cash you didn’t put down. The right answer depends on your numbers and how long you stay.

How we compare them

We total the real cost of owning (interest, taxes, insurance, maintenance) minus the equity you walk away with at sale, and compare it to total rent minus the growth on the cash a renter could invest instead. Every assumption is editable because the result is sensitive to them.

Is it cheaper to rent or buy?
It depends on price, rent, how long you stay, and assumptions about appreciation and investment returns. Over short horizons renting often wins; the longer you stay, the more buying tends to pull ahead as equity builds.
What costs does buying include here?
Mortgage interest, property taxes, homeowners insurance, maintenance, and closing and selling costs. Principal payments are treated as equity, not cost, since you get that money back at sale.
Why does my time horizon matter so much?
Upfront buying costs are spread over the years you own. A longer horizon spreads those costs thinner and gives equity and appreciation more time to grow.
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