Rent vs Buy Calculator
Free rent vs buy calculator. Compare the long-term cost of renting versus buying a home, including mortgage, taxes, maintenance, and opportunity cost, to see which wins over time.
Over 7 years, buying looks cheaper by about $34,048.74. Estimates assume ~3% home appreciation, ~3% rent growth, and a ~5% return on invested savings.
Is it better to rent or buy?
The honest answer is “it depends” — mostly on how long you’ll stay. Buying carries big upfront costs (down payment, closing costs) that take years to earn back through equity and appreciation. The longer your time horizon, the more buying tends to win.
What this calculator accounts for
- The opportunity cost of your down payment if you invested it instead.
- Ongoing ownership costs: property tax, insurance, and maintenance.
- Equity you build plus home appreciation over time.
- Rent inflation over the years you’d otherwise rent.
It’s an estimate, not financial advice — your local market and tax situation matter too.
Frequently asked questions
Is it better to rent or buy a home?⌄
It mostly depends on how long you'll stay. Buying has high upfront costs that take years to earn back, so longer time horizons usually favor buying.
What is the opportunity cost of a down payment?⌄
It's the return you give up by tying money into a home instead of investing it. This calculator accounts for it by assuming the down payment could earn about 5% per year if invested.
What assumptions does this calculator make?⌄
It assumes roughly 3% annual home appreciation, 3% rent growth, and a 5% return on invested savings. You can change the inputs to match your market.
Have another question? Get in touch.