Calculation details
Planning estimate only, not financial, tax, or legal advice. Verify assumptions and current rules before making decisions.
This tool runs in your browser. Your calculator inputs and results are never transmitted to us or to ad/affiliate partners. Ads and sponsored links may set third-party cookies to serve and measure them, but they never receive your calculation values. If you explicitly save a scenario, its permitted fields stay in local browser storage until you clear them. See our Privacy Policy.
Use this result
Share the current inputs or ask ChatGPT to explain the calculation in context.
What does this calculator estimate?
A rent vs buy calculator compares the total cost of renting against buying over your planned horizon. Enter home and rent assumptions to see which option comes out ahead.
- Buying builds equity; renting keeps cash flexible
- Longer horizons favor buying (appreciation compounds)
- Rent increases and home appreciation both matter
What the comparison includes
The calculator models the full picture: buying costs mortgage interest, taxes, insurance, and maintenance, but you keep the equity and appreciation. Renting costs rent and insurance, but the money you didn't put into a down payment can earn investment returns. The winner depends heavily on horizon and assumptions.
Limitations to watch for
The result is only as good as the assumptions: home appreciation, rent growth, mortgage rate, and investment returns are guesses about the future. It ignores some costs (utilities differences, HOA, moving frequency) and tax deductions. Short horizons often favor renting.
How to use it in practice
Enter realistic local numbers: actual rent for a comparable place, the home price you'd consider, current mortgage rates, and your expected time in the home. Run the comparison for 5, 10, and 15 years — the trend matters more than one number.
- Enter the home price, down payment, and mortgage terms.
- Enter the comparable monthly rent and its growth.
- Run it for several horizons and compare.
What the comparison includes
Buying costs: down payment, closing costs, mortgage payments, taxes, insurance, maintenance, and the lost return on the down payment. Renting costs: rent, renter's insurance, and the return on the money not tied up. The calculator models both over your horizon.
The break-even horizon
Buying usually wins over long horizons; renting wins short. The crossover depends on price-to-rent, mortgage rates, appreciation, and how long you stay. At 6.5 percent rates and modest appreciation, the break-even often lands 4–7 years out.
The opportunity cost of the down payment
A $60,000 down payment at 7 percent market return is $4,200 per year of forgone growth. Renting keeps that capital invested. The calculator includes the opportunity cost on both sides — the most commonly ignored line.
Maintenance is a certainty
Homeowners spend roughly 1 percent of home value per year on maintenance. A $300,000 home carries $3,000 annually that renters don't pay. The calculator budgets it explicitly instead of letting it surprise the comparison.
A worked example
$300,000 home vs $1,800 rent, 20% down, 6.5% mortgage, 2% appreciation, 7% investment return, 5-year horizon: buying costs roughly $1,500 more per month in cash terms but builds ~$40,000 in equity and appreciation. The calculator nets both sides so the 5-year number is a verdict, not a vibe.
How this calculator works
Formula
Compares total costs over a horizon: buying (down payment, mortgage payments, taxes, insurance, maintenance, minus equity and appreciation) vs renting (rent, renter's insurance, minus investment returns on the saved down payment).
Worked example
At 20% down, a 6.5% mortgage, and 3% appreciation on a $300,000 home vs $1,500/month rent over 10 years, the tool projects which side comes out ahead — usually buying wins on longer horizons with appreciation.
Assumptions to verify
- The entered rates and growth assumptions are reasonable estimates.
- The buyer stays for the full horizon.
- Maintenance and taxes are approximated by the entered percentages.
Frequently asked questions
Is it better to rent or buy?
It depends on your horizon, local prices, and rates. Longer stays and rising rents favor buying; short stays and high prices favor renting.
How does the calculator work?
It projects total costs of both paths over your horizon: mortgage interest, taxes, and maintenance vs rent, plus equity/appreciation vs investment returns.
Why is buying better long-term?
You build equity, and appreciation compounds on a large asset. But that only pays off if you stay long enough to cover the upfront costs.
Why is renting better short-term?
No down payment, no maintenance, and the money you save can be invested — with low transaction costs when you move.
What are hidden costs of buying?
Closing costs, maintenance (1–3% of home value per year), property taxes, insurance, and the illiquidity of the investment.
How long must I stay to make buying worth it?
Common guidance is 5–7 years, but the real number depends on local prices, rents, and rates — the calculator shows your specific break-even.
What assumptions should I use?
Current mortgage rates, realistic rent growth (2–4%), home appreciation (2–4% historical), and your actual investment returns.
How long must I stay for buying to win?
Commonly 4–7 years at current rates, but it varies by market.
Does the down payment have a cost?
Yes — its forgone investment return is a real cost of buying.
What about maintenance?
About 1% of home value per year — a real cost renters don't pay.
Cite this tool
BoringToolsKit. “Rent vs. Buy Calculator.” boringtoolskit.com/rent-vs-buy-calculator/ (reviewed 2026-08-25). Free to reference in articles, syllabi, and answer posts with a link.
Privacy: Inputs and results stay in this browser. Any future sponsored recommendation or advertisement will be clearly labeled and kept separate from the calculation.