Mortgage
Rent vs Buy Calculator
Compare the long-term net cost of renting versus buying a home over the years you plan to stay, including equity, taxes, and maintenance.
Enter a home price, rent, and how long you plan to stay to see which option costs less once equity, appreciation, and ownership costs are included.
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Scenario presets
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Example
Buying tends to win the longer you stay, because each year builds equity while rent payments keep leaving for good.
Results
Lower net cost
Buying
Cost difference
$79,217
Equity if you buy
$228,491
Projection
Distribution view
No timeline is available for the current inputs.
Running net cost: rent vs buy
Buying saves: $79,217
Result reading
Assumes 3% yearly home appreciation, 3% rent growth, 1.1% property tax, and 1% maintenance. Closing and selling costs are excluded.
Planning cue
Use the output as a scenario test rather than a promise. Small input changes can materially change the result.
Assumes 3% yearly home appreciation, 3% rent growth, 1.1% property tax, and 1% maintenance. Closing and selling costs are excluded.
How it works
What the result is showing you
These sections explain what the calculator measures, which assumptions matter most, and where the number can be misleading.
Why the timeline decides it
Buying carries large upfront costs like the down payment and a payment that is mostly interest at first. The longer you stay, the more equity and appreciation work in your favor, which is why a short stay usually favors renting and a long stay usually favors buying.
What this comparison includes
The buy side adds up mortgage payments, property tax, and maintenance, then subtracts the equity and appreciation you would own at the end. The rent side totals rent payments that rise each year. The chart shows the running net cost of each path.
Costs this model simplifies
Real decisions also involve closing costs, selling fees, insurance, investment returns on the down payment, and lifestyle factors. Use this as a directional guide and confirm the big assumptions before acting.
FAQ
Frequently asked questions
Quick answers to the questions people ask most about this calculator.
How many years until buying beats renting?
It varies with price, rent, and rates, but a common rule of thumb is around five years. Use the chart to find the year where the buy net cost drops below the rent total for your own numbers.
Does buying always build wealth?
Not automatically. If you move before building meaningful equity, transaction costs can erase the benefit. Equity grows slowly at first because early payments are mostly interest.
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