Rent vs Buy Calculator
Wondering whether it makes more financial sense to keep renting or to buy a home? Run the numbers and see for yourself.
Rent vs Buy Calculator
Compare the total cost of renting versus buying a home over time
After 7 years
Buying saves you money
Assumes 3% annual rent increase and 3% annual home appreciation. Includes property tax (1.2%), insurance (0.35%), and maintenance (1%) in ownership costs.
Rent vs Buy: Key Factors
Building Equity
When you buy, a portion of every mortgage payment builds equity in your home. Combined with property appreciation, homeownership is one of the most powerful ways to build long-term wealth. Renters do not build equity with their monthly payments.
The Break-Even Point
The break-even point is when the total cost of buying (including down payment, closing costs, and monthly expenses) becomes less than the total cost of renting. The longer you plan to stay in one place, the more likely buying will come out ahead.
Hidden Costs of Ownership
Beyond the mortgage payment, homeowners pay property taxes, insurance, maintenance, and potential HOA fees. This calculator accounts for these costs to give you a realistic comparison. However, homeowners also benefit from tax deductions on mortgage interest.
Rent Increases Over Time
Rent tends to increase each year, while a fixed-rate mortgage payment stays the same for the life of the loan. Over a 10-year period, your rent could increase significantly, making homeownership increasingly favorable the longer you stay.
Important Note
This calculator uses simplified assumptions for rent increases (3% annually) and home appreciation (3% annually). Your actual results will depend on local market conditions, investment returns on savings, tax benefits, and personal circumstances. This is a starting point for your analysis, not a guarantee.
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