Compare the financial implications of renting versus buying a home to make an informed decision
Enter your details and click Calculate to see results
The rent vs buy analysis helps you determine whether it makes more financial sense to rent a property or purchase one based on your specific circumstances.
This calculation considers factors like home price, mortgage terms, rent costs, property taxes, maintenance, and potential investment returns.
While buying builds equity and offers stability, renting provides flexibility and avoids maintenance costs. The right choice depends on your financial situation and lifestyle goals.
Step 1: Enter the price of the home you're considering buying.
Step 2: Input your planned down payment amount.
Step 3: Select your preferred loan term (15 or 30 years).
Step 4: Enter the current mortgage interest rate.
Step 5: Provide the monthly rent for a comparable property.
Step 6: Estimate annual rent increases (typically 2-3%).
Step 7: Input expected investment return if you invest your down payment.
Step 8: Include property taxes, insurance, and maintenance costs.
Step 9: Click Calculate to see the detailed comparison.
The calculator compares the total costs of renting versus buying over a 30-year period.
Buying Costs Include: Mortgage payments, property taxes, insurance, maintenance, and opportunity cost of your down payment.
Renting Costs Include: Monthly rent payments (with annual increases) and the potential growth of your down payment if invested.
The analysis shows which option is more financially advantageous based on your inputs. Remember to also consider non-financial factors like lifestyle preferences and stability needs.
Our calculator provides accurate, comprehensive analysis to help you make informed decisions
We consider all financial factors including opportunity costs, tax benefits, and appreciation.
Adjust all parameters to match your specific financial situation and local market conditions.
All calculations happen locally in your browser. We never store or transmit your personal data.
Use our calculator on any device - desktop, tablet, or mobile - with a perfect experience.
All our calculators are 100% free to use with no hidden costs or premium tiers.
Get a complete breakdown of costs and see exactly where your money is going over time.
Find answers to common questions about renting vs buying
Our calculator provides a comprehensive financial analysis based on standard formulas used by financial professionals. However, it's important to remember that it uses estimates and assumptions. For precise financial planning, consult with a qualified financial advisor.
Yes, our calculator considers the tax benefits of homeownership, including mortgage interest deductions and property tax deductions, based on current tax laws. However, tax benefits vary by individual circumstances and location, so consult a tax professional for personalized advice.
The calculator includes home appreciation as a factor that increases the value of your equity when buying. We use historical average appreciation rates, but actual market performance may vary. You can adjust this parameter based on your local market expectations.
Opportunity cost refers to the potential returns you could earn if you invested your down payment money elsewhere instead of using it for a home purchase. Our calculator assumes you could earn a conservative return on this money if invested, which is factored into the renting scenario.
Generally, buying becomes more financially advantageous if you plan to stay in the home for at least 5-7 years. This timeframe allows you to build equity and offset transaction costs like closing fees and real estate commissions. Our calculator uses a 30-year timeframe for comprehensive comparison.
Use our comprehensive calculator to determine whether renting or buying is the right financial choice for you