FREE HOME DECISION TOOL

Rent vs. Buy Calculator

Compare the estimated financial paths of renting and buying using housing costs, appreciation, rent growth, transaction costs, investment returns, and time in the home.

Free to useGuided field explanationsYour inputs stay on your device

YOUR NUMBERS

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New to these numbers?Every field includes a plain-language hint. Open Why it matters to see how it changes the rest of your estimate.

Current monthly rentThe monthly rent you pay now or expect the property to collect, depending on this calculator.

Why it matters

In this comparison, rent and its future growth are weighed against ownership costs and equity.

Monthly renters insuranceMonthly insurance for personal property and renter liability.

Why it matters

Renting has recurring costs beyond base rent; include the actual quote when possible.

Potential home priceThe agreed or estimated property price before financing costs.

Why it matters

A higher price increases the loan, down payment, taxes, closing costs, and many reserves.

Down paymentThe share of the price you pay upfront instead of borrowing.

Why it matters

More down usually lowers the loan and monthly payment, but uses more cash at closing.

Mortgage rateThe annual interest percentage charged on the mortgage balance.

Why it matters

Rate and loan size work together: even a small rate change can materially move the monthly payment.

Loan termThe number of years used to repay the new loan.

years

Why it matters

A longer term usually lowers the monthly payment but can increase total interest.

Years you expect to stayHow long you realistically expect to keep the home.

years

Why it matters

A longer stay gives ownership more time to build equity and spread out buying and selling costs.

Annual home appreciation assumptionYour assumed yearly change in the property value—not a guarantee.

Why it matters

Appreciation can increase future equity; test a zero-growth case so the decision does not depend on optimism.

Annual rent growth assumptionYour assumed yearly increase in rent.

Why it matters

Faster rent growth makes renting costlier over time, but it should be grounded in your market and lease history.

Annual tax, insurance, HOA, maintenance & MIAnnual taxes, insurance, mortgage insurance, HOA, maintenance, and other recurring ownership costs outside principal and interest.

Why it matters

These costs can materially change the rent-versus-buy result and should be based on the actual property when possible.

Buying transaction costsTransaction costs paid to acquire the home, entered as a percentage of price.

Why it matters

Buying costs create an immediate hurdle that takes time and equity growth to recover.

Selling transaction costsBrokerage, concessions, transfer, legal, and closing costs expected when selling.

Why it matters

Selling costs reduce the equity available at the end of the comparison.

Alternative annual investment returnAnnual return the upfront purchase cash might earn if it remained invested.

Why it matters

This opportunity cost makes the comparison less dependent on treating the down payment as free capital.

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CALCULATOR GUIDE

How to use the rent vs. buy calculator

Use this scenario tool to compare renting with buying over the period you expect to stay. The model considers ownership equity and transaction costs alongside rent growth and the potential return on cash not used for a purchase.

Key assumptions and limitations

Appreciation, rent growth, and investment return are scenarios rather than forecasts.
Ownership costs and transaction costs use the amounts or percentages entered.
Lifestyle flexibility, moving risk, taxes, and property-specific repairs may affect the decision beyond the modeled totals.

Common questions

How long should I plan to stay?

Use the period you reasonably expect to remain in the home, then rerun shorter and longer scenarios to see how transaction costs affect the comparison.

Does buying always build more wealth?

No. The result depends on price, financing, ownership costs, appreciation, rent, investment returns, and how long you stay.

Educational estimates only. Verify important home, lending, insurance, tax, and legal decisions with the appropriate qualified professionals.

Rent vs. Buy Calculator

Tell us what you know today.

How to use the rent vs. buy calculator

Key assumptions and limitations

Common questions

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