Free Calculator

Rent vs Buy Calculator

Enter rent, home price, financing terms, and the horizon. Net cost accounts for equity buildup, appreciation minus selling costs, and opportunity cost of the down payment invested at market returns.

Monthly rent ($)

Annual rent growth (%)

Home price ($)

Down payment (%)

Mortgage rate (%)

Term (years)

Property tax (%/yr)

Insurance + maintenance (%/yr)

Home appreciation (%/yr)

Investment return (%/yr)

Horizon (years)

Net cost of buying (5y)

$163495

Net cost of renting (5y)

$137683

Monthly P&I if buying

$2694

Est. home value at year 5

$521673

Winner over horizon

Renting — advantage $25812

Estimate only — not an offer or approval decision

Assumptions used

Buy side includes P&I, property tax, insurance, and maintenance, credited by net equity (appreciation minus a 7% selling-cost estimate and remaining loan balance).
Rent side subtracts opportunity cost of the down payment invested at the selected market-return rate.
Rent grows annually at the stated rate; home appreciation compounded annually.

Not included in this estimate

PMI on <20% down loans
HOA dues and special assessments
Tax deductibility of mortgage interest and SALT
Local closing costs, transfer taxes, and title fees
Inflation adjustment on ongoing costs

Real rates, payments, and eligibility depend on the lender or issuer, your credit profile, and current market conditions. Verify current terms directly with the provider before making a financial decision.