Financial Tools
Rent vs Buy Calculator
Compare the real cost of renting and buying over the years you plan to stay. Buying counts the equity you get back at sale, renting counts the growth of the cash you did not tie up.
Buying
Home Price
Down Payment
Mortgage Rate (% per year)
Loan Term
Property Tax (% of value per year)
Home Insurance ($ per year)
Maintenance (% of value per year)
HOA Fees ($ per month)
Closing Costs When Buying (% of price)
Selling Costs When You Leave (% of sale price)
Home Price Growth (% per year)
Renting
Monthly Rent
Rent Increase (% per year)
Renters Insurance ($ per year)
Return on Cash Not Spent on a Down Payment (% per year)
Horizon
Years You Plan to Stay
Values shown are examples. Tax deductions, rent control and moving costs are not modelled, edit the rates to match your market.
Rent vs Buy
| Verdict | n/a |
| Over | n/a |
| Break-even Year | n/a |
| Net Cost of Buying | $0 |
| Net Cost of Renting | $0 |
| Monthly Principal & Interest | $0 |
| Cash Needed to Buy | $0 |
| First-year Monthly Cost of Owning | $0 |
| First-year Monthly Cost of Renting | $0 |
| Equity Returned at Sale | $0 |
Net Cost by Year
| Year | Buying | Renting |
|---|
For illustration only, not financial advice. Results are estimates based on the numbers you enter and do not constitute an offer, rate quote or approval.
Questions people ask
How does the page compare renting with buying?
It runs both year by year over the years you plan to stay. Buying adds the down payment, closing costs, mortgage payments, property tax, insurance, maintenance and HOA, then subtracts the equity you get back at sale. Renting adds rent and renters insurance, then subtracts the growth on the cash you did not put into a down payment.
How is the equity returned at sale worked out?
The page grows the home value each year by the home price growth you enter, takes off selling costs as a percentage of the sale price, and subtracts the loan balance still owed.
What does the Break-even Year mean?
It is the first year in which the net cost of buying is at or below the net cost of renting. If that never happens within your horizon, the page says so.
What does the comparison leave out?
Tax deductions, rent control and moving costs are not modelled. Edit the rates to match your market.
