Rent vs. Buy Calculator
Compare modeled renting and buying costs using your rent, home price and growth assumptions. Explore an estimated break-even point.
Before you calculate
Results depend on future rent and home prices. Maintenance, HOA costs and personal tax effects are excluded; a break-even year is a scenario result.
Rent vs. Buy Analysis
Buying a home involves upfront costs (down payment, closing costs) and ongoing costs (mortgage, taxes, insurance, maintenance), but builds equity over time. Renting keeps capital liquid and avoids maintenance costs. The net buy cost subtracts the equity you accumulate — the true apples-to-apples comparison.
Net Buy Cost = Down Payment + Interest + Taxes + Insurance − (Home Value at Sale − Remaining Balance − Selling Costs − Down Payment)Example Scenarios
Short-Term Stay (< 5 Years)
If you plan to move within 5 years, renting is often cheaper. Transaction costs (agent fees, closing costs ~6–8% of sale price) erode equity gains for short holding periods.
Long-Term Homeowner
Over 10–20 years, buying typically wins as mortgage payments are fixed while rents rise with inflation. A paid-off home provides housing at dramatically lower cost than ongoing rent.
Methodology & Assumptions
Analysis uses 30-year mortgage to determine payments. Selling costs assumed at 6%. Annual property tax estimated at 1.2% of home value; insurance at 0.5%. No HOA or maintenance included.
Sources & calculation notes
Maintained by MoneyCalc. Results are estimates based on the inputs and assumptions shown, not personalized financial advice or a lender quote. Default rates are examples unless a specific tax year or official table is identified.
References explain the underlying concepts or rules. They do not endorse or independently certify this implementation.
Calculations run in your browser. Some tools retain settings on this device. Displayed rounding can produce small differences from a statement or contract.