Rent vs. Buy Calculator

Should you keep renting or buy a home? This renting vs buying calculator compares the true total cost of renting against buying over the years you plan to stay — including down payment, closing costs, maintenance, and property taxes — and gives you a clear verdict. Results update live as you type.

What This Calculator Counts

Most rent-versus-buy comparisons stop at rent vs. mortgage payment — which flatters buying. This one counts the full picture: your down payment, closing costs, every mortgage payment minus the principal you get back as equity, plus 1% yearly maintenance and 1.1% property tax. Renting is modeled with steady annual rent increases, because landlords rarely freeze rent for a decade.

The 5-Year Rule of Thumb

Closing costs and the slow early years of mortgage amortization punish short stays — selling after two or three years often loses to renting even in hot markets. Around five to seven years is where buying typically pulls ahead. Drag the "years you plan to stay" slider above and watch the verdict flip.

Frequently Asked Questions

Does buying build wealth even if it costs more?

Sometimes. Forced savings through principal payments and potential appreciation are real benefits, but they are not guaranteed — this calculator focuses on cost so you can weigh the wealth question separately.

Why is principal repaid subtracted?

Principal payments are not a cost; they convert cash into home equity you keep. Only the interest, taxes, insurance-like costs, and maintenance are true costs of owning.

Should I include the investment return on my down payment?

Strictly speaking, yes — money tied up in a down payment could have earned returns elsewhere. This calculator leaves that out to stay simple; if you want to be conservative toward buying, mentally add a few percent per year on the down payment to the buying side.