Free Online Rent vs. Buy Calculator
Compare the True Cost of Renting vs. Buying a Home
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Deciding whether to rent or buy isn't as simple as comparing a monthly mortgage payment to monthly rent — buying involves property tax, maintenance, and a down payment that could otherwise be invested, while home value appreciation over time partially offsets the ownership costs, all of which need to be weighed together over a realistic time horizon.
Buying
Renting
Assumes the down payment, if renting, is invested instead at the given return rate. Net cost of buying subtracts projected home equity/appreciation. Simplified model — ignores closing costs, PMI, and tax deductions.
Other tools in Finance & Business Calculators
Features
- Runs entirely in your browser
- Privacy-first — your data is never uploaded
- Real-time, instant results
- 100% free, no sign-up required
- Works on desktop, tablet, and mobile
- No installation needed
Who uses this tool?
About Rent vs. Buy Calculator
Deciding whether to rent or buy isn't as simple as comparing a monthly mortgage payment to monthly rent — buying involves property tax, maintenance, and a down payment that could otherwise be invested, while home value appreciation over time partially offsets the ownership costs, all of which need to be weighed together over a realistic time horizon.
This calculator projects both scenarios forward over your chosen number of years: for buying, it accumulates mortgage payments, property tax, and maintenance costs while tracking home value appreciation; for renting, it accumulates rising rent payments while assuming the money you'd have spent on a down payment is invested instead and grows at your chosen return rate.
At the end of the time horizon, it nets out home equity gained from buying against total costs paid, and nets out investment growth against total rent paid, then tells you which option comes out cheaper under your specific assumptions — numbers you can adjust to model different markets, rates, and time horizons.
How it works
- Enter buying details. Input home price, down payment, mortgage rate, and ongoing ownership costs.
- Enter renting details. Input monthly rent, expected rent increases, and investment return rate.
- Compare over your time horizon. See net cost of each option and which is cheaper over your chosen years.
Examples
$400,000 home vs. $2,000/month rent, 7-year horizon
Input
Home: $400,000, 20% down, 6.5% mortgage; Rent: $2,000/mo
Output
Net cost of buying vs. renting compared over 7 years