Rent vs. Buy Calculator
Compare the long-term cost of renting versus buying and estimate a realistic break-even point based on your rent, home price, interest rate, taxes, insurance, and fees.
The right answer depends on how long you plan to stay, how fast rent is rising in your area, and how expensive ownership costs are beyond the mortgage payment. Our calculator focuses on the numbers that usually matter most: cash flow, equity, and opportunity cost.
- Break-even estimate (if it occurs)
- Ending net worth: renting vs buying
- Total out-of-pocket costs for both paths
- Home price appreciation + rent growth
- Closing costs when buying and selling
- Investment return on cash not used for a home
If buying looks close, sanity-check the monthly payment details on our home payment calculator using the same rate, taxes, insurance, HOA, and down payment.
Rent vs. Buy Inputs
This is a planning model. Real-world results vary by market, taxes, insurance, maintenance timing, and transaction fees.
Results
Break-even is based on the assumptions above and compares projected ending net worth. Costs and returns are estimates and can change over time.
What to check next
- If the result is close, test a higher and lower home appreciation assumption.
- If rent is rising fast, test a higher rent increase rate.
- If you might move soon, increase selling costs and shorten the horizon.
How to use this Rent vs. Buy Calculator (quick checklist)
The goal isn’t to “win” the comparison, it’s to see what assumptions would need to be true for buying to beat renting (or vice versa).
- Set your time horizon. If you might move in 2–4 years, selling costs can dominate the outcome.
- Use realistic taxes/insurance/maintenance. Those are the costs buyers often underestimate.
- Test a range of appreciation and rent growth. These vary by market and can swing the result.
- Include closing and selling costs. They are usually the main reason buying doesn’t break even quickly.
- Run two investment return scenarios. Opportunity cost matters when down payments are large.
What usually moves the result the most
- How long you’ll stay
- Buying closing costs
- Selling costs (agent fees, transfer taxes)
- Home appreciation rate
- Rent increase rate
- Investment return on unused cash
Rent vs. Buy FAQs
What does “break-even” mean in rent vs buy?
Break-even is the point when buying becomes as good as (or better than) renting under the assumptions you entered, often measured by ending net worth or net cost over a time horizon.
Why do rent vs buy calculators give different answers?
Results vary based on assumptions: home appreciation, rent increases, investment return, taxes/insurance, maintenance, closing costs, selling costs, and loan terms. Small changes can shift the break-even date by years.
Does this include taxes and insurance?
Yes. You can enter property taxes, homeowners insurance, HOA, and an annual maintenance rate. Those costs often drive the decision more than the interest rate alone.
Does this model include tax deductions?
No. Tax rules vary and change. We keep this calculator focused on cash flows, equity, and opportunity cost. If you want a tax-aware comparison, treat the result as a baseline and confirm with a tax professional.
What investment return should I use?
Many people use a conservative long-term return assumption for a diversified portfolio. If you’re unsure, test a range (for example, 3%–7%) to see how sensitive your decision is.
What’s the biggest mistake people make when comparing rent vs buy?
Comparing only the mortgage payment to rent. The full ownership cost includes taxes, insurance, HOA, maintenance, closing costs, and selling costs while buying also builds equity over time.