Rent vs Buy Calculator

The rent vs buy decision depends on more than current prices. Our calculator accounts for home appreciation, property taxes, maintenance, mortgage interest, and rent increases to show the true financial comparison over your time horizon.

How to Use This Tool

Enter the home price you are considering.
Enter down payment percentage.
Enter mortgage interest rate and term.
Enter expected annual home appreciation.
Enter your current monthly rent and expected annual increase.
Enter your time horizon in years.
Click Calculate to see the winner and cost difference.

The Formula

Compares total cost of ownership (mortgage + taxes + maintenance - appreciation) versus total rent paid, accounting for annual increases in both.

Why It Matters

You pay $1,800/month rent with 3% annual increases versus buying a $300,000 home with 20% down at 6.5% mortgage. Over 10 years, renting costs $222,000 while buying nets $195,000 in costs but gives you $90,000 in home equity. The breakeven point is roughly 5 years.