Rent vs Buy: How This Calculator Works
This calculator compares the total cost of buying a home (down payment, mortgage interest, and an estimated cost of ownership) against the total cost of renting an equivalent home over the same period, helping you see which option costs less based on how long you plan to stay.
Why Your Timeline Matters Most
Buying comes with upfront costs (down payment, closing costs) that take time to "break even" against renting. If you plan to move within a few years, renting is often cheaper overall. If you plan to stay long-term, buying usually becomes more cost-effective as you build equity and your fixed-rate mortgage payment stays stable while rents typically rise.
Costs This Calculator Simplifies
This is a simplified comparison. It doesn't include closing costs, maintenance, property tax changes, home appreciation, or rent increases over time — all of which can shift the answer. Use this as a starting point, then factor in your local market conditions.
Non-Financial Factors to Consider
Beyond the numbers, consider flexibility (renting is easier if your job or life situation may change), maintenance responsibility (owning means you handle repairs), and the value of stability and building equity — some of these are hard to put a dollar value on.
Frequently Asked Questions
Does this calculator include home appreciation?
No, this simplified version doesn't factor in potential home value appreciation, which can significantly affect the buy side of the comparison over a long holding period.
What about maintenance and repair costs?
These aren't included in this calculator. As a rule of thumb, many homeowners budget 1-2% of the home's value annually for maintenance and repairs.
Is buying always better if I stay long enough?
Generally, yes — the longer you stay, the more buying tends to make financial sense, since upfront costs get spread over more years and you build equity instead of paying rent with no ownership stake.