Rent vs. Buy Calculator
Compare the financial impact of renting and buying over your expected time in a home. Adjust the assumptions to see how the results change.
Your Housing Details
Your Comparison
This is a simplified nominal-dollar comparison, not a forecast. It assumes a fixed mortgage rate, annual appreciation and rent changes, annual compounding for alternative investments, and a sale at the end of the comparison period. It excludes PMI, tax deductions, utilities, renter's insurance, and differences in housing services. Actual results may vary substantially.
How does the comparison work?
The buying scenario includes the down payment, closing costs, mortgage payments, property taxes, maintenance, insurance, HOA fees, and estimated selling costs. Sale proceeds reduce the total net cost of buying.
The renting scenario includes rent payments and the potential investment growth of money not used for a down payment or purchase closing costs. Monthly differences between renting and owning are also modeled as invested or withdrawn funds.
What can change the result?
Home appreciation, mortgage rates, investment returns, rent increases, maintenance expenses, and the number of years you stay in the property can all change which option appears less expensive.
Important considerations
This calculator does not establish whether you qualify for a mortgage or whether buying is affordable. It also does not predict property values or investment performance.