Rent vs Buy Calculator
Compare total cost of renting vs buying over your chosen time horizon. Accounts for appreciation, opportunity cost, and all expenses.
🏠 BUYING
🏢 RENTING
Better Financial Choice
Buying cost is net of home equity gained. Renting cost is net of investment growth on down payment. Many non-financial factors (stability, flexibility) also matter.
📐 Formula
Net Buy Cost = Mortgage Payments + Maintenance + Down Payment − Home Equity. Net Rent Cost = Total Rent − Investment Growth on Down Payment
Frequently Asked Questions
Not always. Buying makes more financial sense if you plan to stay 5+ years, home prices are reasonable relative to rents, and you have a stable income. Renting is better for flexibility, uncertain timelines, or in expensive markets.
Divide home price by annual rent for a comparable property. Under 15: buying is favourable. 15–20: neutral. Over 20: renting may be smarter financially. Major cities often have ratios of 25–40+.
Closing costs (2–5% of purchase price), property taxes, homeowner's insurance, HOA fees, maintenance (budget 1–2% of home value annually), and the opportunity cost of the down payment.