Rent vs Buy Calculator
See which is cheaper over the time you plan to stay — mortgage, taxes, maintenance, appreciation and the money you’d invest instead are all factored in.
| Year | Buying cumulative net | Renting cumulative net |
|---|
Estimates only. Assumes constant rates, no refinancing, and that the home is sold at the end of each year shown. Real outcomes depend on local markets, tax rules and your personal situation.
Frequently asked questions
What does “net cost” mean in this calculator?
For buying, net cost is everything you pay out of pocket (down payment, closing costs and all monthly housing expenses) minus what you get back when you sell the home at the end of the period. For renting, it is all the rent you pay minus the growth of the money you kept invested instead of spending on a down payment. A lower net cost means the cheaper option over that time frame.
Why does the break-even year matter?
It is the first year where owning becomes cheaper than renting if you sold the home then. If you plan to stay only a short time, you may never reach it — in that case renting is usually the better financial call. The longer you stay, the more the buying side’s fixed costs get spread out and the more home appreciation can help.
Should I include home appreciation?
Yes, but be conservative. Past US home price growth has averaged roughly 3–4% a year, but it swings with the market and location. Entering 0% gives you the most cautious comparison; a higher number favors buying. The calculator uses your rate for both the sale price and your opportunity cost, so it stays internally consistent.
What is the “investment return” input for?
It represents what the cash you did not sink into a down payment and closing costs could have earned if you had invested it instead. The renting side gets credit for that growth, which is why a high investment return makes renting look more attractive.