Rent or Buy Calculator
Compare the financial implications of renting versus buying a home over time.
Annual percentage of home value
Rent vs. Buy Comparison
Monthly Mortgage Payment
Monthly Rent
Monthly Difference
Total Cost After Years
Buying Total Cost
(After accounting for home equity)
Renting Total Cost
(After investment returns)
Understanding the Rent vs. Buy Decision
What to Consider When Buying
- •Upfront Costs: Down payment, closing costs
- •Monthly Expenses: Mortgage, taxes, insurance, HOA
- •Equity Building: Ownership through principal payments
- •Appreciation: Potential home value growth
- •Tax Benefits: Mortgage interest deductions
When Buying Makes Sense
- •You plan to stay 5+ years in one location
- •You value making a space truly your own
- •Your market has strong appreciation potential
- •You want to build long-term wealth through equity
What to Consider When Renting
- •Monthly Rent: Including expected increases
- •Insurance: Renter's insurance (typically lower)
- •Investment Opportunity: Returns from investing the down payment equivalent
- •Flexibility: Lower commitment and moving costs
When Renting Makes Sense
- •You anticipate moving within a few years
- •You prefer predictable housing costs without maintenance surprises
- •Your area has poor price-to-rent ratios
- •You can earn strong returns by investing your savings
Remember that the rent or buy decision extends beyond pure financial considerations. Your lifestyle preferences, career plans, and long-term goals should all play a role in this important decision.