💰 Finance Calculators
Rent vs. Buy Calculator
Compare estimated total cost of renting versus buying over a set number of years, based on home price, rent, mortgage rate, and appreciation assumptions.
%
% / yr
$77,950
Est. net cost of buying
$184,800
Total cost of renting
Buying looks cheaper by roughly $106,850 over 7 years, under these assumptions. This is a simplified estimate — it doesn't include maintenance, property tax, or closing costs.
How to use this tool
- 1Enter the home price, your down payment, and mortgage interest rate.
- 2Enter comparable monthly rent for a similar place.
- 3Enter how many years you plan to stay — the estimated total cost of each path is compared.
Frequently asked questions
- How accurate is this comparison?
- It's a simplified estimate based on the assumptions you enter (appreciation rate, mortgage rate, holding period). Real decisions also depend on maintenance costs, market conditions, and personal factors this calculator can't account for.
- Why can buying be worse than renting even with home appreciation?
- Buying carries upfront costs (closing costs, down payment opportunity cost) and ongoing costs (maintenance, property tax) that renting avoids — over a short holding period, these often outweigh appreciation gains.