Rent vs Buy Calculator
Compare the total cost of renting versus buying over your chosen time horizon. Factors in mortgage payments, property taxes, maintenance, home appreciation, rent increases, and the opportunity cost of investing your down payment in the stock market.
Buying saves more over 10 years
$100,982 better buying
Buying over 10 years
Renting over 10 years
How the rent vs buy comparison works
Buying is not just a mortgage — it includes property taxes, maintenance, and the opportunity cost of tying up your down payment in an illiquid asset. Renting is not just rent — the down payment you don't spend on a house can be invested. This calculator accounts for all of these factors so you can make a fair comparison.
The net cost of buyingis total money paid out (down payment + all mortgage payments + taxes + maintenance) minus the equity you've built (home value minus remaining loan). The adjusted cost of rentingadds the total rent paid to the opportunity value of your invested down payment.
When does buying make more financial sense?
Buying generally wins over longer time horizons (10+ years), when home appreciation is strong, when rent increases quickly, or when interest rates are low. The longer you stay, the more you amortize transaction costs (agent fees, closing costs) which can be 5–10% of the home price.
What costs are not included?
This calculator does not include closing costs (typically 2–5% of purchase price), real estate agent fees when selling (5–6%), or HOA fees. For buying, these costs significantly favour renting for short time horizons. The state and federal tax deductibility of mortgage interest is also not modelled.
Should I use the average stock market return?
The US stock market has returned ~7% annually after inflation over the long run (10% nominal). This represents the opportunity cost of putting your down payment into a home instead of an index fund. If the stock market return exceeds home appreciation, renting and investing often wins financially.
