Rent vs Buy Calculator
Compare the estimated financial cost of renting versus buying a home.
Enter the home purchase and rental details in the white box.
The blue box compares the estimated costs over your chosen
comparison period and shows the financial difference between
renting and buying.
Buy
Rent
What to calculate next?
Suggested next step Mortgage Calculator →Estimate the monthly cost of buying a home.
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How the Rent vs Buy Calculator works
This calculator compares estimated housing costs over the comparison period you choose.
Buying costs include the down payment, mortgage interest, property tax, home insurance and estimated maintenance. Mortgage principal payments are treated as equity rather than a housing cost.
The estimated value of the home is calculated using the annual home appreciation rate entered. Estimated home equity includes the projected home value minus the remaining mortgage balance.
Renting costs are calculated using the starting monthly rent and the annual rent increase entered.
This is a simplified comparison for planning purposes. It does not include every possible cost or financial factor, such as closing costs, selling costs, HOA fees, mortgage insurance, investment returns, tax deductions or changes in property tax and insurance.
How does home equity affect a rent-versus-buy comparison?
A mortgage payment includes principal and interest. Principal repayment generally builds ownership equity, while interest is a borrowing cost. The calculator also estimates how property appreciation and the remaining loan balance affect equity. Buying can still involve substantial unrecovered costs, so compare the full period rather than just the monthly mortgage payment.