Rent vs Buy Calculator
Total cost of renting against total cost of owning over the same period.
Method
How it works
Renting sums 12 monthly payments for each year while increasing rent annually. Buying assumes a 30-year fixed-rate mortgage, adds the down payment, mortgage payments and yearly ownership costs, then subtracts equity.
Equity is the projected home value minus the remaining mortgage balance. The final difference is renting cost minus owning cost, so a positive result means buying is cheaper under the entered assumptions; transaction costs, tax effects and selling fees are excluded.
Common questions
Frequently asked questions
What mortgage term does the rent-vs-buy calculator assume?
It assumes a 30-year mortgage regardless of the comparison period entered.
How is home equity calculated?
Projected home value at the end of the period minus the remaining mortgage balance.
Are maintenance, property tax and insurance included?
They are represented together by the entered annual ownership-cost percentage.
Does the comparison include buying and selling closing costs?
No. Transaction costs, tax deductions, opportunity cost and selling fees are not part of the stated formula.
Not financial advice. This calculator is for general informational purposes only. Check figures independently before making financial decisions.