Rent vs Buy Calculator

Compare the true cost of renting versus buying a home. See break-even points, equity buildup, net worth projections, and cumulative costs over time with interactive charts.

Rent Inputs

Monthly Rent ($)

Renter's Insurance ($/mo)

Annual Rent Increase (%)

Buy Inputs

Home Price ($)

Down Payment (%)

$70,000.00

Mortgage Rate (%)

Loan Term (years)

Property Tax Rate (%/yr)

Homeowner's Insurance ($/yr)

HOA ($/mo)

Maintenance (%/yr of home value)

Closing Costs (% of price)

$10,500.00

Assumptions

Analysis Period (years)

Investment Return (%/yr)

Return on renter's invested savings

Home Appreciation (%/yr)

Monthly Rent (Now)

$1,815.00

Monthly Buy Cost (Now)

$2,528.12

Break-Even Year

After 10+ yrs

Verdict at Year 10

Rent Wins

Renter Net Worth at Year 10

$259,721.21

Investment portfolio from saved down payment + monthly savings

Buyer Net Worth at Year 10

$232,997.58

Home equity (appreciated value minus remaining mortgage)

Renting and investing puts you ahead by $26,723.63 after 10 years.

Home Equity at Year 10

$232,997.58

Total Rent Paid

$249,419.79

Total Buy Cost (incl. down + closing)

$395,146.73

Net Worth Comparison Over Time

Cumulative Housing Costs

Year-by-Year Breakdown

Year	Monthly Rent	Monthly Buy	Renter Net Worth	Buyer Equity	Advantage
1	$1,815.00	$2,528.12	$95,156.80	$83,629.63	Rent +$11,527.17
2	$1,869.00	$2,547.37	$110,442.50	$97,783.86	Rent +$12,658.64
3	$1,924.62	$2,567.20	$126,389.64	$112,486.17	Rent +$13,903.46
4	$1,981.91	$2,587.62	$143,032.73	$127,761.28	Rent +$15,271.45
5	$2,040.92	$2,608.66	$160,408.38	$143,635.19	Rent +$16,773.19
6	$2,101.69	$2,630.32	$178,555.42	$160,135.28	Rent +$18,420.15
7	$2,164.29	$2,652.64	$197,515.08	$177,290.37	Rent +$20,224.72
8	$2,228.77	$2,675.63	$217,331.13	$195,130.83	Rent +$22,200.30
9	$2,295.19	$2,699.30	$238,050.05	$213,688.66	Rent +$24,361.39
10	$2,363.59	$2,723.69	$259,721.21	$232,997.58	Rent +$26,723.63

How to Use the Rent vs Buy Calculator

Deciding whether to rent or buy is one of the most significant financial choices you can make. This calculator helps you compare both paths side-by-side by modeling real costs, investment growth, and home equity over time.

Step 1: Enter Your Rental Costs

Start with your current monthly rent, renter's insurance premium, and the annual percentage you expect rent to increase (typically 2-5% per year in most U.S. markets).

Step 2: Enter Home Purchase Details

Input the home price, your down payment percentage, expected mortgage interest rate, and loan term. Add property tax rate, annual homeowner's insurance, HOA dues, estimated maintenance costs (typically 1% of home value per year), and closing costs.

Step 3: Set Assumptions

Choose your analysis period (how many years to compare), the expected annual return on investments (for the renter's opportunity cost calculation), and expected home appreciation rate. The S&P 500 has historically returned about 7% after inflation.

Step 4: Review Results

The calculator shows monthly cost comparisons, net worth projections for both scenarios, cumulative costs, equity buildup, and the break-even year when buying becomes financially advantageous.

Frequently Asked Questions

How does the rent vs buy calculator work?+

The calculator compares the total financial outcome of renting versus buying over a specified number of years. For renting, it accounts for monthly rent, renter's insurance, annual rent increases, and the returns you'd earn by investing the money you'd otherwise spend on a down payment and the monthly savings difference. For buying, it factors in mortgage payments, property taxes, insurance, HOA fees, maintenance, closing costs, home appreciation, and equity buildup.

What is the break-even year?+

The break-even year is the point at which the buyer's net worth (home equity) surpasses the renter's net worth (investment portfolio). Before this year, renting and investing the difference would leave you financially better off. After this year, the homeowner comes out ahead. Many analyses find the break-even point is typically between 5 and 10 years, depending on local market conditions.

Why does the calculator include investment returns for renters?+

This captures opportunity cost. When you buy a home, your down payment, closing costs, and any extra monthly housing expenses are tied up in the property. A renter can invest that same money in the stock market or other assets. The calculator models this so you can see a fair apples-to-apples net worth comparison between the two scenarios.

What assumptions should I adjust for my local market?+

The most impactful assumptions are home appreciation rate, property tax rate, and annual rent increase. These vary dramatically by location. For example, property tax rates range from under 0.5% in Hawaii to over 2% in New Jersey and Illinois. Home appreciation has historically averaged about 3-4% nationally but can be much higher or lower in specific markets. Check your local data for the most accurate comparison.

Does this calculator account for tax benefits of homeownership?+

This calculator focuses on direct costs and wealth accumulation without modeling tax deductions (such as mortgage interest deduction or property tax deduction) because most homeowners now take the standard deduction after the 2017 tax reform. For a more precise analysis, consult a tax advisor about whether you'd itemize deductions as a homeowner.

How accurate is this rent vs buy comparison?+

The calculator provides a strong directional estimate using standard financial formulas. Real-world results depend on many factors not modeled here, including home maintenance surprises, local market shifts, changes in interest rates if you refinance, job relocations, and lifestyle preferences. Use it as a starting framework for your decision, not a guarantee of outcomes.