Rent vs Buy Calculator - Should You Rent or Buy?
Compare the total cost of renting vs buying a home over your timeline. Includes taxes, investment returns, and all hidden costs. All calculations happen locally - nothing leaves your browser.
How to Use the Rent vs Buy Calculator
- Enter home details - home price, down payment, mortgage rate, and loan term.
- Set your rent - current monthly rent for a comparable home.
- Adjust timeline - how long you plan to stay in the home.
- Configure taxes - select your state for auto property tax, set tax bracket.
- Review results - see which option saves you more and by how much.
Understanding the Rent vs Buy Decision
The rent vs buy decision isn't just about monthly payments. This calculator factors in closing costs, property taxes, insurance, repairs, investment returns, tax deductions, and opportunity cost of your down payment.
Frequently Asked Questions
Renting typically wins when you plan to stay fewer than 5 years, when home prices are high relative to rent, or when interest rates are elevated.
Buying typically wins when you plan to stay 7+ years, when home appreciation is strong, when rent is increasing rapidly, or when interest rates are low.
This calculator includes: mortgage payments, property taxes, homeowner's insurance, HOA fees, repairs (1%/yr), buying closing costs (3%), selling closing costs (6%), PMI, and the opportunity cost of your down payment.
The calculator compares standard vs itemized deductions and uses whichever saves more. It applies the SALT cap and considers tax-free home appreciation ($250k/$500k) when selling.
Use Cases
First-Time Buyers
Understand the true cost of homeownership before making the biggest purchase of your life.
Relocation Planning
Decide whether to buy or rent when moving to a new city with different housing costs.
Investment Analysis
Compare the opportunity cost of tying up capital in a home vs investing in the market.
Market Timing
See how different interest rates, home appreciation, and rent growth scenarios affect your decision.