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Rent vs Buy Calculator
Compare renting vs buying a home over time
Home Purchase Details
$
$
20% down
%
years
Rental & Assumptions
$
%
Typical: 2-4%
%
Typical: 3-5%
years
%
$
%
Annual % of home value
Net Buying Cost
$169,313
After equity
🏠
Total Renting Cost
$275,133
🏢
Difference
$105,820
Save by buying
💰
Break-Even Year
1 years
⏱️
Recommendation: Buying is Better
Total Buying Cost (Net)
$169,313
Total Renting Cost
$275,133
Home Equity Built
$266,283
Cost Comparison Over Time
Understanding Rent vs Buy
Benefits of Buying
- Build equity over time
- Fixed monthly payment (principal & interest)
- Tax deductions on mortgage interest
- Home appreciation potential
- Freedom to customize your home
Benefits of Renting
- Lower upfront costs
- Flexibility to move easily
- No maintenance or repair costs
- Amenities often included
- No property tax or insurance burden
Key Factor: Break-even is typically 5-7 years. If staying longer, buying often makes sense. If shorter, renting may be better.