CalcQuick

Rent vs Buy Calculator

Compare the total cost of renting versus buying a home based on price, loan terms, rent growth and home appreciation.

Buying

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$
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Renting

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Assumptions

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%
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Comparison

Buying appears cheaper over this period.

Net buy cost: $86,020.22

Total rent cost: $229,873.87

Total rent cost

$229,873.87

Total buying cost

$548,452.79

Estimated home equity

$462,432.57

Net cost to buy

$86,020.22

Results are estimates. Home appreciation, maintenance and selling costs vary widely by market.

How to use

  1. Enter the home price and down payment you are considering.
  2. Set the mortgage rate and how many years you plan to stay.
  3. Enter your current monthly rent and expected annual rent increases.
  4. Adjust assumptions for home appreciation, property tax, insurance, maintenance and selling costs.
  5. Review which option appears cheaper over your planned period.

Formula

Total rent cost = Sum of monthly rent payments over the period, with rent increasing each year.

Total buying cost = Mortgage payments + property taxes + insurance + maintenance + down payment.

Home equity = Future home value − remaining loan balance − selling costs.

Net buy cost = Total buying cost − home equity.

Example

For a $400,000 home with 20% down, 6.5% rate over 7 years, versus $2,500/month rent growing 3% per year:

Buying may be cheaper if the home appreciates enough to offset closing, maintenance and selling costs. Renting may win if home prices are flat or you move frequently.

Frequently asked questions

How long should I plan to stay for buying to make sense?
In many U.S. markets, buying becomes favorable after 5 to 7 years because closing and selling costs are spread over a longer period.
Does this include tax benefits of homeownership?
No. Mortgage interest and property tax deductions are not included because they depend on whether you itemize and your tax bracket.
What if home prices fall?
Set a negative home appreciation rate to model falling prices. This increases the net cost of buying.
Are closing costs included?
Closing costs are not explicitly added here; you can increase the down payment or maintenance assumptions to approximate them.
Is it better to rent or buy a home?
It depends on how long you stay, local prices, rent costs, and interest rates. This calculator compares total costs over your planned time horizon.
How long do I need to stay for buying to make sense?
Buying often beats renting after 5–7 years when factoring in closing costs and equity buildup, but it varies by market.

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