Rent vs. Buy Calculator
Compare total cost over time.
Inputs
$
%
$
%
%
yrs
Result
Total Rent Paid$275,133.10
Total Buy Cost$329,061.67
Renting Cheaper By$53,928.57
About the Rent vs. Buy Calculator
The Rent vs. Buy Calculator compares the total cash outlay of renting against buying over a chosen number of years, including rent escalation and mortgage payments plus down payment.
Calculation method
Rent cost = sum of monthly rent grown by the annual increase. Buy cost = down payment + mortgage payment × months held. It is a cash-flow comparison, not a full net-worth model.
Rent_total = Σ Rent_year × 12 with Rent_next = Rent × (1 + growth)
Buy_total = Down payment + Payment × 12 × YearsHow to use this calculator
- Enter monthly rent and expected annual rent increase.
- Enter home price, down payment %, and mortgage rate.
- Choose how many years you plan to compare over.
Example
$2,000 monthly rent growing 3% a year for 10 years totals about $275,000. Buying a $400,000 home with 20% down at 6.75% costs about $329,000 over the same 10 years — renting is cheaper in this scenario before appreciation and equity.
Frequently asked questions
Does this include home appreciation and equity?
No. The tool compares cash outlay only. Buyers also gain principal paydown and any home-price appreciation, which typically shift the answer toward buying past 5–7 years.
What if I invest the down payment instead?
If you rent, the down payment invested in a diversified portfolio adds to the renter's net wealth. For a full net-worth comparison, subtract the future value of that investment from the rent total.
What about maintenance and taxes?
Real ownership costs include property tax, insurance, maintenance (about 1% of the price per year) and HOA. Add those to the buy total for a stricter comparison.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for decisions specific to your situation.