Rent vs Buy
Not the monthly payment — the full multi-year cost, equity included.
Estimates only — not financial advice. Ignores tax deductions and opportunity cost of the down payment; assumptions drive the answer.
How to compare renting vs buying honestly
- Enter the home you'd buy. Price, down payment, rate, and how long you'll actually stay — the stay length drives everything.
- Enter your rent reality. Current rent plus a realistic annual increase (3% is typical).
- Add the hidden costs. Tax, insurance, HOA, maintenance, buying closing costs, and the ~6% selling cost most comparisons forget.
- Press Calculate. Net buying cost (cash out minus equity) vs total rent — and a verdict.
Frequently asked questions
Is renting just throwing money away?
No — it's buying flexibility and avoiding interest, tax, maintenance, and transaction costs. Rent is the maximum you'll pay; a mortgage payment is the minimum.
What is the 5% rule for rent vs buy?
A rough rule: if annual rent is under 5% of the home's price, renting often wins; above it, buying often wins. This calculator does the real math instead.
Why does how long I stay matter so much?
Buying has huge fixed costs (closing, selling). Spread over 3 years they're brutal; spread over 10 they're trivial — while equity quietly compounds.
Does home appreciation decide it?
Often, yes. At 3% annual appreciation a home roughly doubles in ~24 years. But appreciation is a guess — try 0% to see the conservative case.
What about investing the down payment instead?
That's renting's secret weapon and this calculator's main simplification: it doesn't credit interest on the unspent down payment. Mentally favor renting slightly.
Is this financial advice?
No. Planning estimates with big assumptions — especially appreciation. Stress-test with 0%.
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