Rent vs. Buy Calculator

Rent vs. Buy Calculator compares the full financial position of both paths over a horizon you choose, rather than the misleading rent-versus-mortgage-payment comparison. The buying side accumulates mortgage payments, property tax and maintenance, builds equity as the balance amortizes and the home appreciates, and pays closing and selling costs at each end. The renting side pays rising rent but invests the down payment and closing costs that the buyer sank into the house, compounding at your expected return — the opportunity cost that most comparisons ignore entirely. Both paths are tracked year by year and reported as a net position, so the breakeven year where buying overtakes renting falls out naturally. Every assumption is yours to set, which matters because the answer swings hard on appreciation, investment return and how long you stay.

Key Features

• Opportunity Cost of the Deposit

  The renter invests the down payment and closing costs at your expected return. Omitting this is the most common flaw in rent-versus-buy comparisons.

• Full Ownership Cost Model

  Mortgage payments, property tax, maintenance, closing costs and selling costs are all included. Transaction costs are why short holding periods favour renting.

• Breakeven Year

  Identifies the first year buying overtakes renting on net position. If it lands beyond your likely stay, renting is the better call.

• Rising Rent Modelled

  Rent escalates annually at your chosen rate, compounding against a mortgage payment that stays fixed.

• Year-by-Year Positions

  A table of both net positions for every year in the horizon, so you can see the crossover rather than just being told it.

• Plain-Language Verdict

  States which path is ahead and by how much at the end of your horizon, with the amount rounded to something readable.

1. 1

   Enter rent and rent growth

   Use current monthly rent for a comparable property and a realistic annual increase.

2. 2

   Enter the purchase details

   Home price, down payment, mortgage rate and term define the buying side.

3. 3

   Set ownership costs

   Property tax rate and annual maintenance as a percentage of value. Maintenance around 1% a year is a common planning figure.

4. 4

   Set appreciation and investment return

   These two assumptions drive the result more than anything else. Try conservative and optimistic pairs.

5. 5

   Choose your horizon

   Enter how many years you expect to stay, then read the breakeven year and net positions.

Explore these tools that work great alongside Rent vs. Buy Calculator: