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Rent vs Buy Calculator

Compare renting to owning.

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Enter your numbers and press Calculate.

About the Rent vs Buy Calculator

This calculator compares the estimated cost of renting with the estimated cost of owning a comparable home over a chosen number of years. Owning includes the mortgage payment, taxes, insurance, and maintenance, offset by equity built and any assumed appreciation; renting includes rent and expected rent increases.

The result is sensitive to assumptions about how long you stay, home price growth, and rent inflation. It is a framework for comparison, not a prediction.

How this works

Rent total = Σ(rent, growing) ; Buy total = down payment + monthly costs − equity built.

Assumptions

  • A simplified comparison; excludes maintenance, HOA, closing costs, and opportunity cost.
  • Home value and rent change at constant annual rates.
  • This is an estimate, not a guarantee of future values.

Frequently asked questions

Why does time horizon matter so much?
Buying has large upfront costs (down payment, closing costs). The longer you stay, the more those costs are spread out and the more equity accumulates.
Does the calculator assume home prices rise?
Only by the appreciation rate you enter. Setting it to zero shows the comparison without any assumed price growth.
Is renting "throwing money away"?
Not necessarily. Renting avoids maintenance, property tax, transaction costs, and price risk, and the money not spent on a down payment can be used elsewhere.

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Mortgage Refinance Calculator

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This calculator provides estimates for educational purposes only and is not personalized financial advice. Rates, taxes, and financial products change — verify with providers and qualified professionals.