Rent vs Buy Calculator

Compare the long-term costs of renting versus buying a home. This tool processes all data locally in your browser. No information is ever sent to any server. Completely free, no registration required.

How to Use the Rent vs Buy Calculator

1. Enter your input values above
2. Results update automatically
3. Copy or download the output

What is a Rent vs Buy Calculator?

A Rent vs. Buy Calculator compares the long-term financial outcomes of renting versus buying a home, factoring in home price appreciation, rent increases, mortgage interest, property taxes, maintenance, opportunity cost of the down payment, and tax benefits. The 'renting is throwing money away' cliché ignores the significant unrecoverable costs of homeownership — mortgage interest, property taxes, insurance, maintenance (~1-2% of home value annually), and transaction costs (5-6% when selling). In 2026, with 30-year mortgage rates around 6.3% and elevated home prices in most markets, the rent-vs-buy decision is more nuanced than ever.

How Does It Work?

Enter the home price, down payment, mortgage rate, property tax rate, expected home appreciation rate, and monthly rent for a comparable property. The calculator projects both scenarios over your chosen timeframe (5-30 years), accounting for: the investing of the down payment and monthly savings difference if renting, the growth of home equity if buying, tax deductions (mortgage interest + property tax up to SALT cap), and the net cost of each path. The 'break-even year' shows when buying becomes cheaper than renting.

Formula

Cost of Buying (over N years):\n= Down Payment + Closing Costs\n+ Monthly Mortgage × 12N\n+ Property Tax × N + Maintenance × N + Insurance × N\n− Home Value at Sale × (1 − Selling Costs%)\n+ Remaining Mortgage Balance\n\nCost of Renting (over N years):\n= Monthly Rent × 12N + Renters Insurance × N\n− (Down Payment + Monthly Savings) Invested at Return Rate%

Who Uses This Tool?

• First-time homebuyers deciding between continuing to rent or buying
• Relocating professionals comparing housing options in a new city
• Retirees considering selling to rent or renting out their home
• Real estate investors analyzing buy-vs-rent for investment properties
• Financial advisors helping clients with major housing decisions

Pro Tips

• The '5-year rule': if you plan to stay less than 5 years, renting is usually cheaper due to buying/selling transaction costs (~8-10% of home value round-trip)
• Use the NYT Rent vs Buy calculator as a cross-reference — it's the gold standard. Our calculator includes 2026 data: 6.3% mortgage rates, 3% home appreciation, 2.5% annual rent increases
• Don't forget the 'hidden' costs of owning: major repairs (roof, HVAC, appliances), HOA fees, lawn care, pest control. Budget 1-2% of home value annually for maintenance
• The psychological factors matter too: homeownership provides stability and customization freedom, but also ties you to a location and requires time for maintenance

Frequently Asked Questions about Rent vs Buy Calculator

Is renting really throwing money away?

No. Renting buys you shelter, flexibility, and freedom from maintenance costs and property risk. The unrecoverable costs of owning (mortgage interest, property tax, maintenance, transaction costs) can exceed rent for the first 5-10 years, especially at 6%+ mortgage rates.

How much home can I afford?

The 28/36 rule: spend no more than 28% of gross monthly income on housing costs (PITI) and no more than 36% on total debt (including housing). With 2026 rates, consider staying below 25% of take-home pay for housing to maintain budget flexibility.

Free online Rent vs Buy Calculator — no signup, 100% client-side processing. All data stays in your browser.