Rent vs Buy Calculator

What you pay in rent today. The renting scenario starts here and grows at the rate below.

How fast rent rises per year. Even 3% compounds into a much larger rent over a decade.

The price of the home you would buy instead of renting.

The share of the price paid up front. In the renting scenario this same cash is invested instead — that opportunity cost is part of the comparison.

The yearly interest rate in percent, as quoted by the bank or lender — enter 5 for 5%.

Even a fraction of a percent compounds into a visible difference over a long term, so it pays to compare offers.

The repayment term of the mortgage in the buying scenario.

The recurring costs of owning — maintenance, property tax and insurance — as a yearly percent of the home price. A common rule of thumb is 1–2%.

How fast the home’s value grows per year. It drives the equity you end up with, so the verdict is very sensitive to it — try a pessimistic value too.

The yearly return the renter earns by investing the down payment and other savings rather than putting them into a house.

How many years you would live there before selling or moving on. Buying usually needs several years to overcome its up-front costs.