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Free finance calculator
Compare the cost of renting with the cost of buying a home, including mortgage payments, rent increases, closing costs, home appreciation, investment returns, and ownership costs.
Comparison result
Estimate only. Housing costs and investment returns can vary widely and this is not financial advice.
Enter your current or expected rent, the home price, down payment, mortgage rate, ownership costs, and how long you expect to stay. The calculator estimates the financial difference between renting and buying over that time horizon.
The result compares the estimated net cost of owning with the estimated net cost of renting. Buying receives credit for remaining home equity after selling costs. Renting receives credit for investing the down payment and any monthly savings from renting.
Buying often has higher upfront and monthly costs, while the financial benefit can build through loan principal payments and home appreciation. A shorter stay may favor renting, while a longer stay may give ownership more time to build equity.
This estimate does not include tax deductions, capital gains rules, repairs above the maintenance assumption, local transfer taxes, agent credits, or changes in life plans. Treat the result as a planning estimate.
Does buying always build wealth? No. Homeownership can build equity, but it also adds maintenance, transaction costs, concentration risk, and less flexibility.
Why include investment return? Renters may be able to invest money that would otherwise be used for a down payment or higher monthly housing costs.