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Free Rent vs Buy Calculator

Should you rent or buy your next home? This calculator compares the total costs of both options over time, including mortgage payments, taxes, maintenance, rent, and the opportunity cost of your down payment. Find your break-even year and make an informed decision.

Rent vs Buy Comparison

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Total Cost of Buying
Total Cost of Renting$0
Difference (Buy - Rent)$0
Break-Even Year--
Net Worth if Buying$0
Net Worth if Renting$0

How to Use the Rent vs Buy Calculator

Enter the home price, down payment percentage, mortgage interest rate, and property tax rate. Add closing costs, monthly rent, expected rent growth, and investment return rate. Specify the number of years to compare.

Buying typically becomes more favorable the longer you stay. If you plan to move within 3-5 years, renting is often better. If you plan to stay 7+ years, buying usually wins.

Rent vs Buy Formula

Buy Total Cost = Mortgage Payments + Taxes + Insurance + Maintenance (1%) + HOA + Closing Costs

Rent Total Cost = Monthly Rent x 12 (growing at rent growth rate)

Buy Net Worth = Home Equity - Remaining Mortgage Balance

Rent Net Worth = Down Payment + Savings (invested at return rate)

The opportunity cost is calculated by assuming your down payment could be invested at the expected return rate.

Frequently Asked Questions

Generally, buying becomes more favorable than renting if you stay for at least 5-7 years. This allows enough time to recover upfront closing costs and build meaningful equity through appreciation and principal paydown.
The buying scenario includes monthly mortgage payment (principal and interest), property taxes, homeowner's insurance, 1% annual maintenance, upfront closing costs, and a 6% selling commission when you sell.
The opportunity cost is the potential investment return you give up by using your money for a down payment instead of investing it. For example, a $70,000 down payment at 7% could grow to over $137,000 in 10 years.
Yes, the calculator assumes the home appreciates at the same rate as the investment return rate. In reality, home appreciation averages 3-5% while stock market returns average 7-10%.