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Rent vs Buy Calculator

Compare the true cost of renting vs buying a home. Factor in mortgage, taxes, maintenance, insurance, and investment returns to find the break-even point.

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Renting

Buying

Monthly Mortgage

$2,023

Total Monthly (Buy)

$2,906

Down Payment

$80,000

Break-Even Year

N/A

Total Rent Paid (10yr)

$275,133

Investment value: $285,438

Total Buy Cost (10yr)

$437,392

Home equity: $266,283

Year-by-Year Comparison

YearRent (Year)Buy (Year)Cum. RentCum. BuyHome Equity
1$24,000$35,015$24,000$115,015$95,577
2$24,720$35,164$48,720$150,179$111,753
3$25,462$35,317$74,182$185,496$128,556
4$26,225$35,474$100,407$220,970$146,013
5$27,012$35,636$127,419$256,605$164,155
6$27,823$35,803$155,242$292,408$183,012
7$28,657$35,975$183,899$328,383$202,618
8$29,517$36,152$213,416$364,535$223,007
9$30,402$36,334$243,819$400,869$244,216
10$31,315$36,522$275,133$437,392$266,283
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How to Use Rent vs Buy Calculator

  1. 1

    Enter rent details

    Enter your current monthly rent and expected annual rent increase.

  2. 2

    Enter home details

    Set the home price, down payment, mortgage rate, property tax, maintenance, and insurance.

  3. 3

    Set comparison parameters

    Choose the investment return rate and how many years to compare.

  4. 4

    Analyze results

    See the break-even year, total costs, and year-by-year comparison table.

Frequently Asked Questions

The break-even year is when the total cost of buying (including down payment, mortgage, taxes, maintenance, insurance, minus equity built) becomes less than the total cost of renting. It accounts for home appreciation at 3% per year.

The calculator includes mortgage principal and interest, property taxes, home maintenance, homeowner's insurance, and the opportunity cost of the down payment. It credits home equity built through payments and appreciation.

This simplified calculator does not include mortgage interest deduction or property tax deduction. For many homeowners (especially since 2018), the standard deduction exceeds itemized deductions, making this less of a factor.

It depends on your financial situation, how long you plan to stay, local market conditions, and personal preferences. Generally, buying makes more sense if you plan to stay 5+ years and have a stable income. This calculator helps quantify the financial comparison.