Rent vs Buy Calculator
Compare the true total cost of renting versus buying over your time horizon — including opportunity cost, appreciation, and selling fees.
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How the comparison works
Buying cost = closing costs + all mortgage payments + property tax + maintenance/insurance − home equity you walk away with after selling costs. Renting cost = all rent paid − investment growth on the down payment and monthly savings you kept invested instead of buying. Both are computed month by month over your horizon, so rent increases, amortization, and compounding are all handled properly.
Frequently asked questions
Is it cheaper to rent or buy?
Depends on price-to-rent ratio, how long you stay, rates, and what your cash could earn invested. Buying usually needs 5+ years to win.
What does buying cost that renting doesn't?
Closing costs (2–5%), property tax, insurance, ~1%/yr maintenance, HOA, and 6–8% selling costs at exit. Renters avoid these but build no equity.
Why does investment return matter?
Your down payment could be earning market returns instead of sitting in a house. That forgone growth is a real (and large) hidden cost of buying.