Rent vs Buy Calculator
Enter your current rent and the home you are considering. The calculator compares total rent paid with the net cost of buying — what you pay minus the equity you keep when you sell.
Rent vs Buy
Compare the true cost of renting and buying
Net cost of buying = down payment + mortgage payments + owner costs − equity when you sell. Excludes taxes and investment returns on the down payment.
How it works
- Net cost of buying = down payment + mortgage payments + owner costs − equity at the end.
- Owner costs (maintenance, insurance, property tax) are often 1–2% of the home price per year.
- The longer you stay, the more likely buying wins.
- Taxes, transaction fees and investment returns on your savings are not included.
Worked example: rent 1,200 vs a 300,000 home for 10 years
- 1Rent with 3% yearly increases: ≈ 165,000 over 10 years.
- 2Buying: 20% down, 4% mortgage ≈ 1,146 per month, 1.5% owner costs.
- 3After 10 years the home is worth ≈ 365,700 with ≈ 189,700 left on the loan.
Buying ≈ 25,000 cheaper over 10 years in this example
Who wins? Typical outcomes by years you stay
| Years you stay | Usually cheaper |
|---|---|
| 1–3 | Renting |
| 4–6 | Close — depends on prices |
| 7–10 | Often buying |
| 10+ | Usually buying |
Frequently asked questions
Is it better to rent or buy?
It depends mostly on how long you stay. Buying has high upfront costs that pay off over time; renting is cheaper for short stays.
What is the break-even point?
The number of years after which buying becomes cheaper than renting. Change 'Years you stay' to find it.
Why is the down payment counted as a cost?
It is money you pay up front, but you get it back as equity when you sell — the calculator subtracts that equity at the end.
Are taxes included?
No. Mortgage interest deductions and transfer taxes vary by country, so results are indicative.
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