Rent vs Buy Calculator
Compare renting and owning over the years you actually expect to stay, including rent growth, appreciation, and the equity you build along the way.
If you buy
= $100,000
Illustrative — not a quoted rate.
Per year, share of price.
Per year, share of price.
Per month.
Per year, share of price. Repairs and replacement.
Commission, title and transfer at the end.
Per year. Assumption, not a forecast.
If you rent
Per year.
Buying is ahead after 7 years by
$62,805
Buying moves ahead in year 4 on these assumptions
Two assumptions drive most of this answer: how long you stay, and what you assume about home values. Change them and watch it move.
Solid = rent paid so far. Dashed = the net cost of owning, after the sale proceeds are subtracted. Where the dashed line drops below the solid one, buying is ahead.
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A calculator cannot see your credit file, your assets or the property. A loan officer can.
Jeremy personally reviews every request. 60-minute response times during operating hours.
How to use the rent vs buy calculator
Enter the monthly rent you pay today and how fast you expect rent to grow.
Enter the home price, down payment, interest rate and loan term for the home you would buy.
Add property tax, insurance, HOA dues and yearly upkeep, plus expected home value growth.
Set how many years you expect to stay and the cost to sell at the end.
Read whether buying or renting comes out ahead over that period, and by how much.
Terms used in this calculator
- Equity
- The value of the home minus what you owe. Paying down the loan and rising prices both build it.In the glossary : Equity
- Home value growth
- The yearly rate you assume the home's price rises. It is an assumption, not a promise, and has a big effect on the result.
- Rent growth
- How much you expect your rent to rise each year if you keep renting.
- Upkeep
- Ongoing maintenance and repairs, such as HVAC servicing, roof work and appliances. Owners pay these; renters usually don't.
- Cost to sell
- Costs when you sell, such as agent commissions, title and escrow fees and any repairs. They reduce the equity you walk away with.
- Net cost of owning
- What owning really costs over the period: everything you paid, minus the equity you keep when you sell.
Frequently asked questions
It depends on prices, rents, your rate and the costs to buy and sell. Buying usually needs a few years to recover the costs of buying and selling. Change the years you expect to stay and watch where buying moves ahead.
Equity at the end depends heavily on what the home is worth when you sell. Try a cautious growth rate as well as an optimistic one so the decision doesn't rest on one guess.
Plan for regular items such as air-conditioning servicing and eventual replacement, roof care, pool equipment if there is one, and landscaping. The right figure depends on the home's age and condition, so use an amount that fits the property you are considering.
No. Mortgage interest and property tax deductions depend on whether you itemize and your tax situation, so they are left out to keep the comparison honest. Ask a tax professional how they apply to you.
Programs with low down payments, down payment assistance and gift funds can bring buying closer. Jeremy can show which options fit you and what the real numbers would be.
More questions? See the full FAQ or request a personalized quote.