Calculators · Buying & Financing
Rent vs Buy Calculator
Compare buying and renting over the years you plan to stay, counting equity, selling costs and what the money you don't spend could earn.
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How this calculator works
Rent vs buy comes down to a few assumptions: how long you stay, how home values and rents change, and what your money would earn otherwise. This calculator makes those assumptions visible so you can test them.
Whichever option costs less each month invests the difference, so the comparison is fair to both sides.
- Buying: home value after selling costs − loan balance + invested monthly savings (if owning costs less).
- Renting: the down payment and buying costs invested from day one, plus any monthly savings.
- The home value change and investment return are your assumptions, not forecasts.
Worked example
Example values are illustrative, not quotes or market data. These are the numbers the calculator above starts with.
Inputs
- Home price
- $350,000
- Down payment
- $35,000 (10%)
- Interest rate
- 6.5%
- Loan length
- 30 years
- Property tax rate (% of value)
- 2.2%
- Homeowners insurance per year
- $2,400
- HOA per month
- $0
- Maintenance (% of value per year)
- 1%
- Monthly rent
- $2,200
- Renters insurance per month
- $20
- Years you plan to stay
- 7
- Home value change per year
- 3%
- Rent increase per year
- 3%
- Return on money not spent on housing
- 5%
Results
- Buy net worth
- $115,512
- Rent net worth
- $146,348
- Difference (buy − rent)
- -$30,835
Common questions
How long do I need to stay for buying to make sense?
It depends on the assumptions; buying and selling costs mean short stays often favor renting. Try your own numbers.
Does this include tax deductions?
No. Mortgage interest and property tax deductions depend on your situation; ask a tax professional.
What appreciation should I use?
There is no reliable forecast. Try a range, including zero and negative values.
Related calculators
- Home Affordability Calculator
- Mortgage Payment Calculator
- Rental Property Cash Flow Calculator
- All calculators
Estimate only. Actual loan terms, eligibility, insurance, taxes, and settlement charges require verification. These are planning estimates, not a lender Loan Estimate, Closing Disclosure, appraisal, or approval. Michael O'Neal is a real estate broker, not a lender, appraiser, attorney or tax adviser.
Next step
Want a real financing quote? Connect with Home Front Mortgage.
Andrew Fairleigh, Mortgage Loan Originator, Home Front Mortgage, NMLS #1878546. (979) 595-8979 · [email protected]
Rates in these calculators are examples, not Home Front quotes. Your application goes to Home Front's secure site. Do not send financial documents through this website.
Affiliated business arrangement disclosure. This is to give you notice that some agents and owners at Keller Williams Realty Northeast, including Michael O'Neal, have a business relationship with certain providers of services related to your purchase, sale or refinance of real estate, including Home Front Mortgage and Keystone Title & Escrow. Because of this relationship, a referral may provide some owners and agents at Keller Williams Realty Northeast a financial or other benefit. You are NOT required to use either company as a condition for your purchase, your financing or refinance, or any other transaction related to a property. There are frequently other providers available with similar services. You are free to shop around to determine that you are receiving the best services and the best rate for these services. You will be given the written Affiliated Business Arrangement Disclosure, including estimated charges, to review and sign.