Rent vs Buy Calculator

What is Rent vs Buy Calculator?

Compare renting and buying by holding period, mortgage cash flow, carrying costs, sale equity, and selling costs.

• Compare a realistic holding period.
• Stress-test home appreciation assumptions.
• Bring transaction and selling costs into the decision.

Scope and country basis

This page compares renting and buying over a holding period. It is not a rent-versus-mortgage-payment shortcut.

Markets differ by taxes, closing costs, stamp duty, ownership costs, and selling fees. Enter local assumptions for your country or city.

What each input means

Monthly rent

Money field, formatted in the selected currency.

Home price

Money field, formatted in the selected currency.

Down payment

Money field, formatted in the selected currency.

Annual interest rate

Percentage field: enter 8 for 8%.

Loan term

Number field: enter the value that matches your scenario.

Annual home appreciation

Percentage field: enter 8 for 8%.

Planned holding period

Number field: enter the value that matches your scenario.

Annual ownership cost rate

Percentage field: enter 8 for 8%.

Selling cost rate

Percentage field: enter 8 for 8%.

Formula and interpretation

Buy net cost = down payment + mortgage paid + ownership costs - net sale equity. Rent cost = monthly rent x holding months.

A cheaper buy result is not automatically a buy recommendation, and a cheaper rent result is not automatically a rent recommendation. Liquidity, mobility, risk, and lifestyle still matter.

Key concepts

Holding period

How long you expect to own before selling.

Net sale equity

Sale proceeds after loan payoff and selling costs.

Ownership cost

Recurring non-mortgage cost such as tax, maintenance, insurance, and HOA.

How to read the result

• Test low or negative appreciation, not only optimistic growth.
• Short holding periods often make transaction costs more important.
• Compare total costs, not just monthly payments.

How to use it

1. Enter home price, down payment, rate, term, and housing-cost assumptions.
2. Review payment, total interest, affordability, or rent-vs-buy output.
3. Adjust down payment, term, rate, and holding period to compare household cash flow.
4. Before buying, verify local rules, taxes, insurance, and lender underwriting.

Common mistakes

• Comparing rent only with mortgage payment.
• Assuming home prices always rise.
• Ignoring moving, maintenance, and selling costs.

Suggested workflow

1. Estimate mortgage payment.
2. Add total housing costs.
3. Run rent-vs-buy with conservative and optimistic assumptions.

Method and review boundary

This calculator runs a local estimate from the inputs and formula shown on this page. It does not retrieve live rules, rates, underwriting decisions, or quotes from banks, tax authorities, insurers, or other providers. Last reviewed: July 24, 2026.

For tax, lending, insurance, retirement, investment, or contract decisions, verify official guidance, the relevant agreement, and a formal quote for your location. Use this result to compare scenarios and prepare questions, not as financial, tax, investment, or legal advice.

Method notes and official sources

The comparison depends on the entered holding period, appreciation, ownership costs, and selling costs. It does not forecast home prices or automatically model taxes, maintenance shocks, financing fees, rent changes, liquidity, mobility, or non-financial preferences.

The page calculates locally from user-entered values and does not retrieve live rates, quotes, approvals, benefits, or underwriting results. Currency selection changes formatting only and does not perform FX conversion.

• CFPB: Consider whether it is the right time to buy - Consumer Financial Protection Bureau
• CFPB: Figure out how much you want to spend - Consumer Financial Protection Bureau
• CFPB: Mortgage closing fees and charges - Consumer Financial Protection Bureau

Sources checked July 27, 2026. These are U.S. government or regulatory references. Laws, product rules, and official pages can change; verify the applicable authority and contract documents before a formal decision.

FAQ