Rent vs Buy Calculator

Use our easy-to-use Rent vs Buy Calculator to compare both options and see which one is right for your lifestyle and long-term goals

How to Use Our Rent vs Buy Calculator

The calculator is designed to be simple, yet powerful. You start by entering your current or expected monthly rent. Then, add the details of a potential home purchase — things like the home’s price, your down payment, mortgage interest rate, and loan term. You’ll also enter some of the ongoing costs of owning a home, such as property taxes, insurance, and yearly maintenance.

For those who want a deeper analysis, advanced settings let you customize values like annual rent increases, home appreciation rates, and even the return you might earn if you invested your down payment instead. Once everything’s filled in, the calculator instantly compares the total cost of renting versus buying over time, and highlights which option could save you more money.

More: Free Mortgage Calculator | Estimate Monthly Payments

What Your Results Will Show

Your personalized results go far beyond just comparing monthly payments. The calculator lays out the total cost of renting and the total cost of buying over a set number of years. It accounts for rent inflation, mortgage amortization, taxes, maintenance, and the opportunity cost of tying up your money in a home instead of investing it elsewhere.

You’ll see a clear financial breakdown, including charts that show how your costs build up year after year — whether you rent or buy. And the best part? It gives you a simple recommendation based on the numbers: should you rent or buy, based on your situation and goals? That’s financial clarity you can act on.

Behind the Math: How It Works

This isn’t a basic calculator that just adds up your rent payments. It’s a robust financial model that takes several key variables into account. Mortgage payments are broken down into principal and interest, while homeownership costs like insurance, taxes, and maintenance are added in to reflect the true cost of owning a property.

On the renting side, the tool factors in rent increases over time — because let’s face it, rent rarely stays the same. It also looks at what could happen if you chose to invest the money you’d otherwise spend on a down payment and closing costs. The end result is a long-term comparison that gives you a much clearer picture than just looking at monthly expenses.

More: Income Based Repayment Calculator

Key Terms You Should Know

If you’re new to this kind of financial decision-making, here are a few terms the calculator uses:

A down payment is the upfront amount you pay when buying a home — typically 10% to 20% of the price. The loan term is how long you’ll take to repay your mortgage, often 15 to 30 years. Your interest rate is the cost of borrowing money from the bank.

You’ll also need to consider property taxes, which are annual fees paid to your local government, and home maintenance, which includes everything from small repairs to major upgrades. On the renting side, rent inflation shows how your rent may increase each year. If you choose not to buy, your investment return reflects how your money could grow elsewhere — say, in the stock market.

When Renting May Be the Better Choice

There are plenty of situations where renting can be the smarter financial move. If you’re not planning to stay in one place for long, or if the real estate market in your area seems overpriced, renting gives you flexibility without the financial commitment of a mortgage. It’s also a good choice if you’d rather invest your savings in something more liquid, like stocks, or if you’re not ready to take on the responsibilities that come with owning a home — like repairs, maintenance, and property taxes.

Sometimes, renting simply offers more peace of mind, especially if your job or lifestyle requires mobility or if you’re building your financial foundation before committing to homeownership.

More: Free Personal Loan Calculator: Estimate Payments, Interest & Total Costs

When Buying Makes More Financial Sense

On the flip side, buying a home can offer long-term benefits that renting can’t match. If you plan to stay put for several years, homeownership lets you build equity instead of paying rent that doesn’t come back to you. In a strong market, your property could appreciate in value over time, growing your net worth. And with today’s mortgage rates still relatively low, you may be able to lock in affordable monthly payments that stay consistent over time — unlike rent, which often increases year after year.

Buying also gives you more control over your space, and potential tax benefits depending on where you live. But most importantly, it can offer the emotional and financial stability many people are looking for in the long run.

Final Thoughts

At the end of the day, rent vs. buy is not something to keep up with — it’s a decision that’s personal to you. Our Rent vs. Buy Calculator enables you to make your decision based on fact, as it pertains to your life, your future, and your bottom line.

Test out the calculator yourself and compare what’s most cost-effective for you. Want to design your dream home or simply review your possibilities? You’ll be out of here with the facts you can use to proceed with confidence.