Rent vs. Buy Calculator

What really decides rent vs buy

The biggest factor is usually how long you will stay. Buying carries large upfront costs that take years to earn back, so the longer you own, the more buying tends to win. Below a certain number of years, often three to five, renting frequently comes out ahead once every cost is counted.

Rather than trusting a rule of thumb, compare the total cost of each over the period you expect to stay. That is exactly what this calculator does.

The costs people forget

Buyers often overlook closing costs, property tax, insurance and ongoing maintenance (a common estimate is around 1 percent of the home's value a year). Renters overlook that the money not tied up in a down payment could be invested and earning a return.

A fair comparison is not just rent versus mortgage; it is renting plus investing the difference versus buying. Including both sides gives you an honest answer for your situation.

What does the calculator compare?

It estimates the net cost of renting (total rent paid) versus buying (down payment, mortgage payments, taxes and maintenance, minus the home equity and appreciation you keep) over your chosen time horizon.

Why does how long I stay matter so much?

Buying has large upfront costs, so the longer you stay, the more those costs are spread out and the more appreciation and equity you build, which often tips the balance toward buying over time.

Is this financial advice?

No. It's an estimate to inform your thinking. Real decisions also involve lifestyle, job stability and local market conditions, consult a financial professional.