Should you rent or buy a home? This free rent vs buy calculator compares the true total cost of renting versus buying over any time period. It factors in mortgage payments, down payment opportunity cost, property taxes, maintenance, home appreciation, rent increases, investment returns, and selling costs. Enter your numbers and get a clear, data-backed verdict to guide one of the biggest financial decisions of your life.
Renting saves you $147,254 over 10 years
Net cost: Buy $104,388 vs Rent -$42,867
Monthly equivalent: Buy $869.90/mo vs Rent -$357.22/mo
With these inputs, renting stays cheaper for the full 10-year period
= $70,000
| Scenario | Year 1 | Year 5 | Year 10 |
|---|---|---|---|
| Buying | $2,150.31 | $2,244.17 | $2,382.44 |
| Renting | $1,515.00 | $1,703.26 | $1,972.16 |
| Difference | +$635.31 | +$540.91 | +$410.28 |
Year 1
Year 5
Year 10
Buyer's mortgage is fixed, but property tax and maintenance grow with home value. Rent grows at the specified annual increase rate.
Buyer's Wealth
$204,775
Renter's Wealth
$251,017
| Year | Mortgage | Interest | Prop. Tax | Insurance | Maint. | Tax Benefit | Home Value | Equity |
|---|---|---|---|---|---|---|---|---|
| 1 | 21,237 | 18,108 | 3,850 | 1,200 | 3,500 | 3,984 | 360,500 | 83,630 |
| 2 | 21,237 | 17,898 | 3,966 | 1,200 | 3,605 | 3,938 | 371,315 | 97,784 |
| 3 | 21,237 | 17,675 | 4,084 | 1,200 | 3,713 | 3,888 | 382,454 | 112,486 |
| 4 | 21,237 | 17,436 | 4,207 | 1,200 | 3,825 | 3,836 | 393,928 | 127,761 |
| 5 | 21,237 | 17,181 | 4,333 | 1,200 | 3,939 | 3,780 | 405,746 | 143,635 |
| 6 | 21,237 | 16,910 | 4,463 | 1,200 | 4,057 | 3,720 | 417,918 | 160,135 |
| 7 | 21,237 | 16,620 | 4,597 | 1,200 | 4,179 | 3,656 | 430,456 | 177,290 |
| 8 | 21,237 | 16,311 | 4,735 | 1,200 | 4,305 | 3,588 | 443,370 | 195,131 |
| 9 | 21,237 | 15,981 | 4,877 | 1,200 | 4,434 | 3,516 | 456,671 | 213,689 |
| 10 | 21,237 | 15,629 | 5,023 | 1,200 | 4,567 | 3,438 | 470,371 | 232,998 |
Enter the home price, down payment percentage, mortgage interest rate, loan term, property tax rate, homeowners insurance, HOA dues, and estimated maintenance costs.
Enter your current monthly rent, renter's insurance cost, and the expected annual rent increase rate based on your local market.
Use the slider to set how many years you plan to stay. Adjust the expected home appreciation rate, investment return rate, marginal tax rate, and inflation rate to match your assumptions.
See whether renting or buying saves you more over your chosen period. Review the total cost comparison, monthly budget impact, and the break-even year when buying becomes cheaper.
Use the sensitivity sliders to see how changes in appreciation, rent increases, or investment returns affect your decision. Scroll through the year-by-year breakdown for a detailed cost comparison.
Many people compare their monthly mortgage payment to their monthly rent and assume the lower number wins. In reality, the true cost of homeownership includes far more than the mortgage. Property taxes, homeowners insurance, maintenance (typically 1-2% of home value per year), HOA fees, and eventual selling costs (5-6% in agent commissions) all add up. On the renting side, you avoid these costs but lose the equity-building benefit of a mortgage. A proper comparison must account for every dollar on both sides over the full time horizon.
When you buy a home, your down payment and closing costs are locked into the property. If you had rented instead, that money could have been invested in the stock market or other assets earning compound returns. For a $350,000 home with 20% down, that is $70,000 plus roughly $10,000 in closing costs. Invested at 7% annually, that $80,000 could grow to approximately $157,000 in 10 years. This calculator models this investment growth for the renting scenario so you can see the full financial picture, not just the monthly payment comparison.
The length of time you plan to stay is one of the most powerful variables in the rent vs buy equation. In the first few years of ownership, closing costs, selling costs, and the interest-heavy early mortgage payments make buying expensive relative to renting. But as time passes, home appreciation builds equity, the mortgage balance declines, and rent keeps rising with inflation. Most analyses show buying breaks even with renting somewhere between year 5 and year 7, depending on local conditions. Beyond that point, the homeowner typically pulls ahead. Use the time horizon slider above to see exactly where the crossover happens for your situation.
Calculate monthly loan payments, view amortization schedules, compare loan options, and model extra payment savings.
Find out how much to save each month to reach your target by your deadline. Visualize your progress toward any goal.
Plan your monthly budget using the 50/30/20 rule or custom categories. Visualize spending limits and stay on target.
See how purchasing power changes over time. Calculate the real value of money across any year range.
Disclaimer: This tool is provided for informational and educational purposes only. It does not constitute financial, tax, investment, or legal advice. Results are estimates based on the inputs you provide and may not reflect actual financial outcomes. Always consult a qualified financial professional before making financial decisions.
