Advertisement
Ad Slot: top-banner
The rent vs buy decision is one of the biggest financial choices you will make. This calculator compares the total cost of both options, including equity building, tax benefits, and opportunity costs.
Rent vs Buy Calculator
Results
Total Rent Cost
$247,619.79
Total Buy Cost
$317,374.86
Home Equity Built
218,370.73
Buy Advantage
148,615.67
Break-Even Year
194
Sponsored
Compare Mortgage Rates
See today's best mortgage rates from top lenders. Compare offers in minutes.
Compare RatesWe may earn a commission from partner links. This does not affect our recommendations.
Advertisement
Ad Slot: in-content
How It Works
We calculate the total cost of renting (rent + annual increases) versus buying (mortgage, taxes, insurance, maintenance minus equity and appreciation) over your specified time horizon.
Formula
Buying Cost = Mortgage + Tax + Insurance + Maintenance - Equity - Appreciation; Renting Cost = Rent × Months × (1 + Annual Increase)Assumptions
- Home appreciates at 3% annually
- Rent increases 3% annually
- Maintenance at 1% of home value
- Investment returns on savings at 7%
Frequently Asked Questions
Related Calculators
Mortgage Payment
Calculate your monthly mortgage payment including principal, interest, taxes, insurance, and PMI.
Affordability
Find out how much house you can afford based on your income, debts, down payment, and interest rates.
Rental Property
Analyze rental property investments including cash flow, cap rate, and ROI.
Budget
Create a simple budget and see your savings rate, spending breakdown, and recommendations.
Advertisement
Ad Slot: sidebar