Rent vs. Buy Calculator: Which Makes More Sense for You?
Rent vs. buy calculator
Compare the true cost of renting against buying over the years you plan to stay. The calculator weighs your mortgage, taxes and upkeep against rent — and credits renters for the return they could earn by investing their down payment instead.
- Free to use
- No sign-up
- Accounts for equity & opportunity cost
If you buy
If you rent
Cost to buy
- Upfront cash$0
- Payments + taxes + upkeep$0
- Equity recovered at sale$0
Cost to rent
- Total rent paid$0
- Investment gains on cash$0
How this calculator works
Cost to buy = upfront cash (down payment + buying costs) + every mortgage payment, property tax, insurance and maintenance over the period, minus the equity you recover at sale (the home’s appreciated value, less the remaining loan balance and selling costs).
Cost to rent = total rent paid (rising each year) minus the investment gains you’d earn by investing the cash you didn’t put into a down payment — the opportunity cost of buying. The lower net total wins.
This is a simplified comparison. It leaves out tax deductions and lifestyle factors, which vary too much to estimate reliably.
Frequently asked questions
Why factor in investment returns?
When you rent, you avoid tying up a large down payment. That cash could be invested. To compare fairly, we credit renters with the returns they could earn on it — the opportunity cost of buying.
What if I plan to stay a long time?
The longer you stay, the more buying tends to win: upfront costs spread over more years and you build more equity. Change “years you’ll stay” to find the tipping point.
Does this include tax benefits of owning?
No. Mortgage interest and property tax deductions can help the case for buying, but they vary widely by income, so we leave them out to keep the estimate transparent.
A simplified estimate for comparison only and not financial advice. Real outcomes depend on markets, taxes, and how long you stay.