Rent vs Buy Calculator: Should You Rent or Buy a Home?
The internet loves to say “renting is throwing money away.” The truth is: it depends. Let the numbers decide.
Rent vs buy calculator
Estimates for learning only — not a loan offer. Real numbers come from a lender's Loan Estimate.
How we compare renting and buying
For renting, we add up every rent check, with yearly increases. For buying, we add the down payment, closing costs, mortgage payments, taxes, insurance and upkeep — then subtract what you get back when you sell, after selling costs.
The big leverHow long you stay matters most. Buying has big upfront and selling costs, so it usually needs several years to beat renting. Try changing “years you will stay” and watch the result flip.
Things the numbers do not show
- Owning gives stability and freedom to renovate. Renting gives flexibility to move.
- Big repairs (roof, HVAC) can land at bad times.
- If you rent, investing the money you would have put down can change the result.
Quick questions
How many years until buying beats renting?
It varies by city, prices and rates, but a common rule of thumb is around five years or more.
Is home value growth guaranteed?
No. Prices can fall, especially in the short term. Try a lower growth rate to stress-test your plan.
More free tools: see all calculators.