Rent vs Buy Calculator — Which Is Cheaper?

Compare the real cost of buying a home vs renting over the years you plan to stay, with editable assumptions. 100% in your browser — free, no sign-up.

How to

  1. 1Enter the home price, down payment, mortgage rate, and the monthly rent for a similar home.
  2. 2Set how many years you plan to stay — and tune the assumptions if you like.
  3. 3Read which path is cheaper over that horizon, and by how much.

What the calculator compares

It estimates the net cost of each path over the years you plan to stay. Buying counts everything you pay out — down payment, closing costs, mortgage payments, property tax, insurance, maintenance — minus the equity you would walk away with after selling. Renting counts total rent (growing yearly) minus the growth your down-payment cash could earn if it stayed invested.

The formula

Net buying cost = cash out (down + closing + monthly P&I × months + tax/insurance/maintenance) − equity at sale, where equity = future home value − remaining loan balance − selling costs. Net renting cost = total rent paid − investment growth on (down payment + closing costs). Whichever net cost is lower wins for that time horizon.

Why time horizon dominates

Buying front-loads big one-time costs (closing when you buy, agent fees when you sell) that only pay off if spread over enough years of equity building. That is why renting usually wins for short stays and buying tends to win for long ones — the break-even is often somewhere around 4–8 years, depending on your numbers.

What it does not include

It holds tax, insurance, and maintenance at today's rates, and leaves out income-tax effects (like mortgage-interest deductions), HOA fees, and rent controls — all of which vary by country and person. Adjust the editable assumptions to fit your market, and treat the result as a comparison of scenarios, not financial advice.

FAQ

How does it decide which is cheaper?+

It compares net costs over the years you plan to stay: buying = all cash out minus equity you would get back at sale; renting = total rent minus growth the down-payment cash could earn invested.

Why does renting win for short stays?+

Buying front-loads one-time costs — closing costs when you buy and agent fees when you sell — that need years of equity building to pay off. Break-even is often around 4–8 years.

Can I change the assumptions?+

Yes — property tax, insurance, maintenance, buying/selling costs, home appreciation, rent growth, and investment return are all editable under Assumptions.

Does it include tax deductions?+

No. Income-tax effects, HOA fees, and rent controls vary too much by country and person — the result is a scenario comparison, not financial advice.

Is it free?+

Yes, completely free — no sign-up and no watermark.

Is my data private?+

Yes — this tool runs entirely in your browser. Your files and text are never uploaded.

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