How to use Rent vs Buy Calculator
The rent vs buy calculator compares the true cost of renting a home against buying one over the years you plan to stay. It totals your rent with annual increases on one side, and on the other the mortgage, property tax, and maintenance of owning — then subtracts the home equity you would keep to give a net cost of buying. The result tells you which option is cheaper for your situation, with all the assumptions adjustable.
- Enter your monthly rent and expected annual rent increase.
- Enter the home price, down payment, and mortgage details.
- Set property tax, maintenance, appreciation, and years you will stay.
- Read the recommendation and the cost comparison.
Your data never leaves your device — 100% private processing.
The real cost of buying a home
The sticker price of a home is only part of the story. Owning adds property tax, insurance, and ongoing maintenance — often estimated at around one percent of the home’s value per year — plus the interest on your mortgage, which in the early years dwarfs the principal you repay. Against those costs sits the equity you build and any appreciation in the home’s value, which you recover when you sell. The calculator nets these together so you compare the money you will never get back (interest, tax, upkeep) against renting, rather than misleadingly comparing rent to a mortgage payment alone.
| Cost | Typical range |
|---|---|
| Property tax | 0.5–2.5% of value / yr |
| Maintenance | ~1% of value / yr |
| Mortgage interest | Rate-dependent, front-loaded |
The break-even horizon
Every rent-vs-buy decision has a break-even point: the number of years you need to own before buying becomes cheaper than renting. Below it, the upfront costs of buying — down payment, and interest-heavy early payments — outweigh the equity you build, so renting wins. Above it, appreciation and accumulated equity tip the balance toward buying. High mortgage rates, low appreciation, and high transaction costs push the break-even further out; strong appreciation and a large down payment bring it closer. Adjusting the years-to-stay field shows where your personal break-even falls.
Worked examples
Short stay
Inputs: Stay 2 years
Result: Renting usually cheaper
Long stay
Inputs: Stay 15 years, 3% appreciation
Result: Buying usually cheaper
High rates
Inputs: 8% mortgage, flat prices
Result: Break-even pushed out
Glossary
- Home equity
- The portion of the home’s value you own outright — its value minus the remaining mortgage.
- Appreciation
- The increase in a home’s market value over time.
- Break-even point
- The length of ownership at which buying becomes cheaper than renting.
- Down payment
- The upfront cash paid toward a home purchase, reducing the mortgage needed.
Related reading
Frequently Asked Questions
Why use Rent vs Buy Calculator?
- Compares renting and buying over your actual planned length of stay
- Accounts for mortgage, property tax, maintenance, and home appreciation
- Subtracts home equity so you see the true net cost of buying
- Lets you adjust every assumption to match your local market
Common use cases
- Decide whether to rent or buy before a job relocation or move
- See how many years you must stay for buying to beat renting
- Test how mortgage rates or appreciation change the rent-vs-buy answer
- Sanity-check a home purchase against continuing to rent
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