Rent vs. Buy Calculator

The number of years it takes for the total cost of owning a home to drop below the total cost of renting, after accounting for equity, appreciation, and selling costs. Staying past this point generally favors buying; moving sooner generally favors renting.

The investment return a renter forgoes by not putting their down payment and closing costs into the market. This calculator assumes that cash stays invested and grows at your chosen investment return rate instead.

The annual rate at which a home's value is assumed to grow. Higher appreciation shortens the breakeven horizon because it builds equity faster, while flat or falling markets favor renting longer.

One-time fees paid when purchasing a home, including loan origination, title insurance, appraisal, and recording fees. Typically 2-5% of the purchase price, paid upfront in addition to the down payment.

Costs incurred when a home is sold, primarily real estate agent commissions, typically totaling 6-10% of the sale price. These reduce the equity a buyer actually walks away with.

The portion of your home's value you actually own: current market value minus the remaining mortgage balance. Equity grows through both loan paydown and appreciation.

Ongoing upkeep a homeowner pays that a renter doesn't, such as repairs, replacements, and general wear and tear. Commonly estimated at around 1% of home value per year.

The annual percentage rent is assumed to increase. Faster-rising rent shortens the breakeven horizon since renting becomes relatively more expensive each year.

The total cash spent under a scenario minus what's recovered at the end (home equity after selling costs for buying, or the grown investment balance for renting). This calculator compares net cost, not just monthly payments, to find the better deal.