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Home loans

Rent vs. Buy Calculator

Compare the true cost of renting and buying over the years you'll actually stay — including appreciation, upkeep, selling costs, and what your down payment could earn invested.

Inputs7-YR VIEW
$
$
%
$
yr
Home appreciation Annual
%
Rent growth Annual
%
Investment return On invested cash
%
Property tax Annual, % of value
%
Maintenance Annual, % of value
%
Home insurance Annual premium
$
Renting wins byover 7 yr
$36,919
net cost to buy$181,362
net cost to rent$144,443
breakeven on buying—
own vs rent (mo, yr 1)
+$986
down + closing
$96,600
horizon
7 yr
Net cost over time (lower is better)
Cumulative cost to buy Cumulative cost to rent
-$15k$38k$91k$143k$196k2026202820312033

How the comparison works

"Rent is throwing money away" is a myth — and so is "always buy." The honest comparison gives both paths the same starting cash: your down payment plus closing costs. The buyer puts it into a home that (hopefully) appreciates while they pay down principal; the renter invests it and lets it compound.

Each year we tally the buyer's costs (mortgage, tax, insurance, maintenance) against the equity and appreciation they'd recover if they sold — and the renter's rent against their investment gains. The lower net cost wins, and the year the buy line drops below the rent line is your breakeven point.

net cost = cash paid out − asset value recovered

Common questions

Is it cheaper to rent or buy?
It depends on how long you stay, home appreciation, your rent, and what your cash could earn if invested. Buying carries large upfront and selling costs, so it usually wins only after several years. This calculator finds your breakeven year for the numbers you enter.
What is the breakeven point for buying?
It's the year at which the total net cost of buying drops to or below the net cost of renting. Before it, renting-and-investing is cheaper; after it, owning pulls ahead. Faster appreciation and higher rents push the breakeven earlier.
Why does this include an investment return?
To compare fairly, both paths start with the same cash — your down payment plus closing costs. The buyer sinks it into a home; the renter invests it. Counting the renter's investment gains is what makes rent-vs-buy an apples-to-apples comparison instead of just 'rent is throwing money away.'
What costs does the calculator include?
For buying: mortgage principal and interest, property tax, insurance, maintenance, closing costs, and selling costs, offset by appreciation and equity built. For renting: rent that grows each year, offset by investment returns on the cash you didn't tie up in a down payment.

How we calculate this

A year-by-year net-cost model with symmetric starting capital. The renter invests the upfront lump (not the month-to-month difference) — a transparent, standard simplification. Planning estimates only — not financial advice.

Full methodology & sources →
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Estimates for general informational purposes only and not financial advice. Results are highly sensitive to appreciation, rent growth, and investment-return assumptions, none of which are guaranteed. Consult a licensed professional.