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About the Rent vs Buy Calculator
This calculator compares the total cost of renting against the total cost of buying a home over the period you choose. You get a side-by-side cost breakdown and a clear answer on which option costs less for your situation.
The calculator builds the mortgage payment with the standard amortization formula P x r x (1+r)^n / ((1+r)^n - 1). It then adds upfront costs, property tax, insurance, maintenance, and estimated home appreciation for the buying side, plus rent, rent increases, and renter insurance for the renting side. It credits the renting side with returns on the money a buyer would spend on a down payment. Enter realistic numbers for your market, and test several holding periods, since buying usually only wins after enough years.
- Enter the home price, down payment, loan rate, and term.
- Add yearly costs and growth rates for both options.
- Compare the totals and review the breakeven point.