Rent vs Buy Calculator
The biggest financial decision, broken down
Rent vs buy isn't just a math problem — it's a lifestyle choice with decades of financial consequences. This calculator models the full cash outflow of both paths: rent payments on one side, mortgage, down payment, closing costs, and maintenance on the other. Compare the curves and see where they cross.
General rule of thumb
If monthly rent > 0.5% of purchase price,
buying usually wins over 7+ years
Which path is right for you?
The answer depends on your timeline. Here's a framework to guide your thinking.
Renting wins when...
- You'll move within 5 years
- Rent is below 5% of home price annually
- You value flexibility over equity
Buying wins when...
- You'll stay 7+ years
- Monthly rent exceeds 0.5% of purchase price
- You're building a long-term asset
What rent-vs-buy calculators often miss
Three costs that make buying more expensive than the sticker price suggests.
3% of purchase price
Closing costs
Legal fees, title insurance, land transfer tax, and appraisal costs. Paid upfront before you get the keys — not rolled into the mortgage.
1% of home value / year
Maintenance
Roof, HVAC, plumbing, appliances. Renters don't pay this. Homeowners budget $4,200/year on a $420K home — that's $350/month in hidden spend.
Down payment invested elsewhere
Opportunity cost
A $84K down payment invested at 7% annual return would grow to $164K in 10 years. The calculator factors only cash outflows — this is the missing piece.
Financial Assumptions
Total rent paid
Estimated buy cost
Lower cost
Down payment
$84,000
Closing costs
$12,600
6.5%
Rent
Buy
Better
Down
$84,000
Closing
$12,600
Rate
6.5%
Stop guessing. Model both paths.
Enter your monthly rent and the home price you're considering. Slide the years. See which path costs less.