Rent vs Buy Calculator

Compare the total cost of renting versus buying a home over time. Factor in mortgage, property taxes, maintenance, rent increases, investment returns, and opportunity costs.

5 minutes Medium

How to Use This Calculator

Enter your current monthly rent and expected annual increase
Input the home purchase price and down payment
Add mortgage details (rate and term)
Include homeownership costs (property tax, insurance, HOA, maintenance)
Set your investment return rate for opportunity cost calculations
Choose your time horizon (how long you plan to stay)
Click Calculate to see the financial comparison

Rental Information

Monthly Rent *

Annual Rent Increase *

Average yearly rent increase percentage

Renter's Insurance (Monthly)

Security Deposit

Typically 1-2 months rent (returned at end)

Purchase Information

Home Purchase Price *

Down Payment *

Enter down payment amount (click $ to switch)

Mortgage Interest Rate *

Loan Term *

Closing Costs

Typically 2-5% of purchase price

Annual Home Appreciation

Expected yearly home value increase

Homeownership Costs

Property Tax (Yearly)

Enter yearly property tax amount (click $ to switch)

Home Insurance (Yearly)

Enter yearly home insurance amount (click $ to switch)

HOA Fees (Monthly)

Maintenance & Repairs

Enter amount for upkeep (click $ to switch)

PMI Rate (if down payment < 20%)

Annual PMI rate (click $ to switch)

Additional Monthly Utilities

Extra utility costs when owning vs renting

Financial Assumptions

Investment Return Rate

Expected annual return if down payment invested instead

Marginal Tax Rate

For mortgage interest deduction calculation

Time Horizon *

years

How long you plan to stay (1-30 years)

Home Selling Costs

Realtor fees and closing costs when selling

💡 Understanding Rent vs Buy Analysis

This calculator compares the total net cost of renting versus buying over your specified time period. It factors in all costs including mortgage interest, property taxes, maintenance, opportunity costs, and potential appreciation. The analysis helps you make an informed decision based on your specific financial situation.

💰 The 5% Rule of Thumb

A common guideline suggests that if annual rent exceeds 5% of the home's purchase price, buying may be better financially. However, this calculator provides a much more detailed analysis by considering:

Opportunity cost of your down payment
Tax benefits from mortgage interest deduction
All ownership costs including maintenance and HOA
Expected appreciation and selling costs

🏠 Non-Financial Factors to Consider

While this calculator focuses on financial comparison, remember to consider non-financial factors in your decision:

Stability: Owning provides housing security and no surprise rent increases
Flexibility: Renting makes it easier to relocate for opportunities
Control: Homeowners can renovate and customize their space
Responsibility: Renters don't worry about maintenance or repairs

🔗 Save & Share Your Analysis

Your rent vs buy comparison is automatically saved in the URL. You can bookmark this page to save your calculation, or use the Share button to send it to others. When you return or share the link, all values will be restored automatically.