Rent vs Buy Calculator
Enter the home price, mortgage terms and the rent you pay now. We compare the net worth you would end up with from buying and from renting.
This calculator gives estimates for information only. It is not financial, tax or legal advice. Real results depend on lender terms, fees and local rules.
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The formula
Buyer net worth = home value x 0.94 - mortgage balance + invested savings. Renter net worth = down payment and monthly savings invested at your return.
How the comparison works
Each month we work out what owning costs (mortgage, property tax and upkeep) and what renting costs. Whoever pays less invests the difference at your chosen return. At the end we compare net worth: for the owner it is the home value after selling costs, minus the mortgage, plus any savings. For the renter it is the invested down payment and savings.
What drives the answer
- How long you stay: buying costs a lot up front, so it usually needs several years to pay off.
- Home price growth vs investment return: the bigger the gap, the more it favours one side.
- Mortgage rate: a high rate makes renting look better.
- Rent increases: faster rises favour buying.
What it leaves out
Tax effects, mortgage interest deductions, insurance, moving costs, the value of stability and the flexibility of renting. It also assumes steady growth, while real prices and markets move around. Use it to compare scenarios, not as a prediction.
Tip
Try the same calculation for 5, 10 and 20 years. For many people buying loses over a short stay and wins over a long one.
Examples to check
Type these into the calculator above to see how it behaves. Every result below was produced by the same calculator code that runs on this page.
| What you enter | What you get |
|---|---|
| Home price ($): 400000; Down payment (%): 20; Mortgage rate (%): 6.5; Mortgage term (years): 30; Property tax (% of value per year): 1.1; Maintenance (% of value per year): 1; Home price growth (% per year): 3; Monthly rent ($): 2200; Rent increase (% per year): 3; Investment return if renting (% per year): 5; Years to compare: 10 | Better financially over this period: Buying |
| Home price ($): 400000; Down payment (%): 20; Mortgage rate (%): 6.5; Mortgage term (years): 30; Property tax (% of value per year): 1.1; Maintenance (% of value per year): 1; Home price growth (% per year): 3; Monthly rent ($): 2200; Rent increase (% per year): 3; Investment return if renting (% per year): 5; Years to compare: 4 | Better financially over this period: Renting |
Rent vs Buy Calculator: frequently asked questions
Is it always better to buy?
No. It depends on how long you stay, your local prices and rents, and what you would do with the money you save by renting.
What selling costs are assumed?
We deduct 6 percent of the final home value for agent fees and closing costs.
Is this financial advice?
No. It gives an estimate from the numbers you enter. Real offers depend on fees, tax and the lender or provider, so check the terms before you commit.
Is what I enter in this calculator saved or sent anywhere?
No. The calculation runs in your browser, so what you enter is not sent to our servers. We only count, anonymously, whether a tool ran successfully.
Is this calculator free to use?
Yes. It is free, needs no sign-up and has no usage limit.
Last reviewed: October 3, 2026