🏘️ Rent vs Buy Calculator

Should you rent or buy? Compare the true costs side by side.

Should you rent or buy? Renting offers flexibility with no maintenance costs, while buying builds equity but ties up cash in a down payment and repairs. The better choice depends on how long you’ll stay, local prices, and mortgage rates.

Monthly rent

Home price

Down payment (%)

Mortgage rate (%/yr)

How many years will you stay?

–

Total rent paid	–
Buying: down + payments	–
Minus equity you built	–
True cost of buying	–

Simplified: ignores rent increases, home value changes, taxes, insurance and maintenance.

Tip: calculate first — your result is included when you share.

📚 Related guide: How Much of Your Salary Should Go to Rent? — the 30% rule, gross vs take-home pay, what counts as housing cost, and when it's okay to spend more.

How to Use the Rent vs Buy Calculator

"Renting is throwing money away" — or is it? The honest answer depends on prices, rates and how long you stay. This calculator compares the true cost of both paths over your planned stay: total rent paid versus buying cost (down payment + mortgage payments, minus the equity you've built).

Enter your monthly rent, the home price, down payment, mortgage rate and how many years you'll stay, then press Compare Rent vs Buy. The verdict badge tells you which wins and by how much, with the full breakdown underneath.

The key insight: early mortgage payments are mostly interest, so buying only pulls ahead after several years — typically 5–10 depending on the market. Stay 3 years and renting usually wins; stay 15 and buying usually wins big, because each payment builds equity you keep.

This is simplified — it ignores rent increases (which favor buying), home appreciation (favors buying), and taxes, insurance and maintenance (favor renting). For the mortgage maths in detail, see our Mortgage Calculator.

Frequently Asked Questions

Is renting really throwing money away?

Not necessarily. Rent buys flexibility and avoids interest, taxes, insurance and maintenance. Buying builds equity but costs more upfront — over short stays, renting often wins.

How long should I stay for buying to make sense?

Roughly 5–10 years in most markets, because early mortgage payments are mostly interest and buying has big upfront costs. The longer you stay, the more buying wins.

What is home equity?

The part of the home you truly own: down payment plus the principal portion of mortgage payments (plus any price appreciation). It's why buying's 'true cost' is less than total payments.

What does this calculator leave out?

Rent increases, home price changes, property tax, insurance, maintenance (~1%/yr) and the opportunity cost of the down payment. Treat the verdict as a strong starting point, not the final word.

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🏘️ Rent vs Buy Calculator

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