Rent vs Buy Calculator
Compare the total cost of renting versus buying a home over a chosen period.
Calculate
Enter your values below.
Result
Total cost of renting
0
Total cost of buying
0
Buying vs renting difference
0
Formula used
Total renting cost is simply rent × months. Total buying cost is ownership cost × months, plus the down payment, minus any estimated home value appreciation.
Example: Renting at $1,800/mo vs buying at $2,100/mo with $40,000 down and $20,000 appreciation over 5 years — compares the real net costs.
How to use this calculator
- Enter Monthly rent, Time period (months), Monthly ownership cost (P&I + tax + insurance), Down payment, Estimated home value gain over period.
- Press Calculate to see your result instantly.
FAQ
Frequently asked questions
What should I include in 'monthly ownership cost'?
Principal and interest, property tax, insurance, and any HOA or maintenance costs.
Why subtract home appreciation from buying costs?
Because a home is also an asset — if it gains value, that partially offsets the cost of ownership when you eventually sell.
Does this include selling costs when you eventually sell the home?
No — for a more complete picture, subtract estimated agent fees and closing costs from the appreciation figure.
Is a lower total cost always the better choice?
Cost is one major factor, but consider flexibility, stability, and lifestyle preferences too.