Rent vs Buy Calculator
Trying to decide whether renting or buying is the better financial choice? Our Rent vs Buy Calculator gives you a clear, visual breakdown of both paths — not just in terms of total costs, but also in long-term value and wealth building.
You’ll enter your monthly rent, expected home price, interest rate, and other key factors. We’ll calculate:
Total out-of-pocket cost for renting and buying
Future investment value if you rented and invested instead
Home equity if you bought and sold after X years
A dynamic line graph showing when buying becomes more advantageous
This calculator is ideal for first-time buyers, long-term renters, and anyone facing the “rent or buy” dilemma.
How the Calculator Works
Our Rent vs Buy Calculator models your decision over time — not just in dollars spent, but in real financial gain.
Renting
We total all your expected rent payments year by year, including:
Monthly rent and expected annual increases
Renter’s insurance
What your upfront homebuying funds could have earned if invested instead
Buying
We calculate total costs like:
Mortgage payments based on real-time interest rates
Property taxes, homeowners insurance, and maintenance
FHA, VA, USDA, or conventional loan fees
Closing costs and discount points
We also track your growing home equity, subtract it from total cost, and chart the net cost of buying.
Where the Two Paths Cross
The magic of this calculator lies in its line chart. Over time, buying may begin to cost less than renting — and you’ll see exactly which year that crossover happens.
Whether you’re planning to stay 3 years or 15, you’ll know exactly where you stand.
Frequently Asked Questions (FAQ)
What’s included in the Rent vs Buy calculation?
We include rent payments, renter’s insurance, and investment gains if you didn’t buy. For buyers, we include the mortgage, taxes, maintenance, insurance, and equity buildup.
When does buying become better than renting?
That depends on your interest rate, how long you stay in the home, appreciation rate, and rent inflation. Our chart shows exactly when the crossover happens for your scenario.
Do I need to factor in taxes or deductions?
Not yet. We plan to add support for state and local tax (SALT) limits and potential deductions in a future update.
Does this calculator work for FHA or VA loans?
Yes. Just select your loan type, and we’ll apply the correct upfront and monthly fees automatically.
Can I trust this calculator more than others?
We think so! Unlike other tools, we factor in equity, appreciation, realistic loan costs, and investment growth. And we use real OBMMI interest rates when available.
