Rent vs Buy Calculator
Find out whether buying or renting leaves you better off over the years you plan to stay, counting mortgage, upkeep, rent rises and what your savings could earn.
Result
Enter the home and rent details to compare.
How to use this calculator
- Enter the home price, down payment, mortgage rate and term.
- Enter the rent for a similar home and how long you will stay.
- Adjust growth rates and costs to match where you live.
Formula
Both choices start with the same money. The buyer pays the down payment and buying costs; the renter invests that amount instead. Each month, whoever has the lower housing cost invests the difference. At the end, the buyer’s wealth is the home’s value minus selling costs and the remaining loan, plus investments; the renter’s wealth is their investments.
Worked example
Mortgage payment
A 300,000 home with 20% down at 6% over 30 years has a monthly payment of 1,438.92.
Assumptions and limitations
- Everything runs in your browser; nothing you enter is uploaded or stored.
- Tax effects, such as mortgage interest relief or capital gains, are not included. House prices and returns can fall as well as rise.
Frequently asked questions
Why does how long I stay matter so much?
Buying and selling costs are paid once, so they weigh heavily over short stays. The longer you stay, the more time equity and price growth have to make up for them.
Is rent “dead money”?
Not entirely: mortgage interest, property tax and maintenance are also costs you never get back. The calculator compares all of them.