Rent vs buy calculator
Compare the total cost of renting and buying over the years you plan to stay, and see when buying starts to come out ahead.
Over
is cheaper by
They cost the same.
- Total cost of renting
- Total cost of buying
- Loan still owed when you sell
Buying doesn't become cheaper within 40 years.
Tax deductions aren't included.
Estimates only, for illustration.
How this calculator works
Renting costs the rent you pay over the years you stay, with rent rising each year by the amount you choose.
Buying adds up:
- Your down payment and buying costs
- Mortgage payments, property tax, insurance, maintenance and any HOA fees
- What the money you put down could have earned if you'd invested it instead
Then it takes off what you'd get back when you sell: the home's value after growth, minus selling costs and what you still owe on the mortgage.
The results show which costs less over your time frame, and the break-even year when buying first becomes cheaper.
Choosing your numbers
- Home value growth varies widely. A cautious 2 to 3% a year is a common long-run guess.
- Selling costs, including agent fees and closing costs, often total 6 to 10% of the sale price.
- Maintenance of about 1% of the home's value a year is a common rule of thumb; older homes may need more.
There's more to the decision than cost: flexibility, stability and how settled you feel all count.
Common questions
It depends on prices, rents and rates where you live, but buying often takes around five years or more to beat renting. That's because buying and selling costs are high, and early mortgage payments are mostly interest.
The money you'd spend on a down payment and closing costs could be invested instead if you rented. Counting what it could have earned gives a fairer comparison.
No. Most homeowners now take the standard deduction, so mortgage interest and property tax deductions often make little difference. If you itemize, buying may come out slightly better than shown.