Rent vs. Buy Calculator
Compare the cost of renting with the cost of buying based on your own assumptions.
These calculators are for educational purposes only and are not financial, tax, legal, insurance, investment, real estate, employment, medical, childcare, vehicle-buying, or professional advice.
Buying can build equity, but it also brings interest, taxes, maintenance, closing costs, and selling costs. Renting can be flexible, but rent can rise over time.
Jump to resultsYour situation
Start with what renting costs today and how long you expect to stay.
Your current or expected rent before renter's insurance.
Home purchase
Use editable assumptions. They are not current market quotes.
The calculator displays the estimated dollar amount in the results.
Ongoing owner costs
Include the recurring costs that come with owning the home.
PMI is estimated only when down payment is under 20%.
Advanced assumptions
These estimates affect opportunity cost and long-term home value. Change them to test different scenarios.
Frequently asked questions
Is it cheaper to rent or buy?+
It depends on rent, home price, mortgage rate, taxes, maintenance, selling costs, investment returns, and how long you stay. This calculator compares those inputs side by side.
How does the rent vs. buy breakeven point work?+
The breakeven point is the first month when the estimated buyer ending position is at least as high as the renter ending position.
What costs are included when buying a home?+
The model includes down payment, buying closing costs, mortgage principal and interest, property taxes, homeowners insurance, HOA dues, maintenance, PMI when applicable, and selling costs.
Does this calculator include investment returns?+
Yes. The renting side invests the upfront cash that would have gone toward down payment and closing costs. Either side also invests the monthly savings when it has the lower monthly cost.
Does this calculator include taxes?+
It includes property taxes as an ownership cost. It does not include income tax deductions, capital gains treatment, or local tax rules.
How accurate is a rent vs. buy calculator?+
It is an educational estimate. The real answer can change with local market conditions, repairs, taxes, transaction timing, inflation, and personal preferences.
Should I buy if the calculator says buying wins?+
Not automatically. A favorable estimate is one input. Cash reserves, job stability, lifestyle needs, risk tolerance, and professional guidance still matter.