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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.
Before making a real decision, compare this estimate with a lender preapproval, a realistic rent renewal, insurance quotes, property tax history, HOA documents if applicable, and a repair reserve. Housing decisions are partly financial and partly lifestyle, so the cheapest path on paper may not be the best fit.
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.
A buyer who stays three years may pay closing costs, moving costs, repairs, and selling costs before home equity has much time to grow. The same buyer staying ten years has more time for principal payments and appreciation to offset those transaction costs. That is why the calculator asks for the number of years you expect to stay instead of treating rent vs buy as a universal answer.
The cheaper option is not always the better life fit. Renting may offer flexibility, less maintenance responsibility, and easier relocation. Buying may offer stability, control over the property, predictable long-term housing plans, and the ability to customize the home. Use the calculator for the money side, then compare those lifestyle tradeoffs separately.