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Rent vs Buy Calculator

Compare renting vs buying a home with total costs, equity buildup, tax benefits, and long-term financial impact. Make informed housing decisions with detailed rent-buy analysis.

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Buying Scenario

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Renting Scenario

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Return on saved/invested money

Comparison Period

years

Comparison Results

Renting is better over 10 years. You'll save $782773 compared to buying.
Savings
$782,773
Break-Even Year
Year 1

Monthly Comparison

Buying (average)
$1,966/mo
Renting (starting)
$1,500/mo

Buying Costs (over 10 years)

Total Cost
$248,140
Home Value
$403,175
Equity Built
$210,960
Net Cost
$37,180

Renting Costs (over 10 years)

Total Rent Paid
$206,350
Investment Value
$951,943
Net Cost
$-745,593
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Rent vs Buy: Making the Right Decision

The rent vs buy decision depends on many factors beyond just monthly cost. Consider your timeline, financial situation, and personal preferences.

Factors to Consider

  • Timeline: How long will you stay?
  • Finances: Can you afford down payment and ongoing costs?
  • Market: Are home prices rising or falling?
  • Lifestyle: Do you value flexibility or stability?
  • Opportunity Cost: Could you earn more investing the money?

Hidden Costs of Buying

  • Closing costs (2-5% of purchase price)
  • Maintenance and repairs
  • Property taxes
  • HOA fees
  • Insurance
  • Opportunity cost of down payment

Benefits of Each Option

Buying: Build equity, tax deductions, stability, freedom to customize

Renting: Flexibility, no maintenance, lower upfront costs, invest savings

Frequently Asked Questions

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