How to use the Rent vs. Buy Calculator
The rent vs buy calculator compares the net cost of buying with renting over a chosen number of years.
Open the Rent vs. Buy Calculator →
What you need to enter
- Home price ($)
- Down payment (%)
- Mortgage rate (%)
- Property tax + insurance (% / year)
- Maintenance (% / year)
- Home appreciation (% / year)
- Monthly rent ($)
- Rent increase (% / year)
- Years
- Return if you invest down payment (%)
The formula
Buying cost = mortgage payments + taxes + maintenance + down payment − equity after selling. Renting cost = rent paid − growth on the invested down payment.
Worked example
Using the default values in the calculator:
- Home price ($): 380000
- Down payment (%): 15
- Mortgage rate (%): 6.5
- Property tax + insurance (% / year): 1.6
- Maintenance (% / year): 1
- Home appreciation (% / year): 3
- Monthly rent ($): 2000
- Rent increase (% / year): 3
- Years: 10
- Return if you invest down payment (%): 6
| Cheaper option | Buying |
| Net cost of buying | $194,569.52 |
| Net cost of renting | $230,054.78 |
| Home equity after selling (6% costs) | $206,220.04 |
Tips for better results
- Results depend on how long you stay and on house price growth.
- Try different assumptions.
Common mistakes to avoid
- Assuming one choice always wins.
- Ignoring selling costs.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.