Rent vs. Buy Calculator

See which option costs less for how long you plan to live there.

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How to Use the Rent vs. Buy Calculator

  1. Enter your current or expected monthly rent.
  2. Enter the home price, down payment %, and mortgage rate.
  3. Enter the loan term and how many years you plan to stay.
  4. Click Calculate to compare total costs.

Formula

Buying Cost ≈ Down Payment + (Monthly P&I × 12 × Years); Renting Cost = Rent × 12 × Years

Worked Example

Renting at $1,500/month for 7 years costs about $126,000, while buying a $300,000 home with 20% down at 6.5% costs roughly $220,000 over the same period, before counting appreciation.

About This Calculator

This is a simplified comparison that excludes home appreciation, property taxes, maintenance, and rent increases — use it as a starting point alongside your own local numbers.

Frequently Asked Questions

How does this compare renting versus buying?

It totals estimated long-term cost of renting versus buying, including equity built and resale value.

What's often overlooked in this comparison?

Maintenance costs, property taxes, and opportunity cost of the down payment.

Is buying always better financially?

Not always — it depends on how long you stay and local price-to-rent ratios.

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