Rent vs Buy Calculator

Free online calculator to compare the long-term cost and net worth of renting vs buying a home, with break-even year, cumulative costs, and year-by-year net worth difference.

Renting Inputs

Buying Inputs

Assumptions

Current Monthly Rent

$1,972.16

Current Monthly Cost of Buying

$2,372.52

Break-Even Year

Not reached within the analysis period

Verdict

Renting is better

Renter's Net Worth

$230,273.17

Buyer's Net Worth

$199,712.21

YearAnnual Rent CostAnnual Buying CostRenter's Net WorthBuyer's Net Worth
1$18,180.00$26,492.56$82,142.56$71,682.54
2$18,720.00$26,687.23$95,859.77$83,814.74
3$19,276.20$26,887.74$110,181.49$96,416.72
4$19,849.09$27,094.26$125,139.37$109,509.67
5$20,439.16$27,306.99$140,766.96$123,115.88
6$21,046.93$27,526.09$157,099.80$137,258.81
7$21,672.94$27,751.76$174,175.61$151,963.17
8$22,317.73$27,984.21$192,034.38$167,255.00
9$22,981.86$28,223.63$210,718.56$183,161.71
10$23,665.92$28,470.23$230,273.17$199,712.21

What Is a Rent vs Buy Calculator?

The rent vs buy calculator simulates the cost and net worth of renting vs buying year by year, giving monthly cost comparison, break-even year, and year-by-year net worth difference to support your home buying decision.

How to Use

Using the rent vs buy calculator is simple:

  • Enter monthly rent, insurance, and rent increase
  • Enter home price, down payment, rate, taxes, and maintenance costs
  • Set the analysis period, investment return, and appreciation, then view the comparison results

Tips

  • Home appreciation and property tax rate affect the result most - use local market values
  • Use the long-term stock market average return (about 7%) as the investment return
  • This tool is for estimation - consult a professional for major home buying decisions

Frequently Asked Questions

How does this calculator compare renting and buying?+
It simulates both paths year by year: the renter invests the money saved at a set return rate, while the buyer builds home equity (appreciation minus the remaining loan). The year when both net worths are equal is the break-even point.
What is the break-even year?+
The break-even year is the first year the buyer's net worth exceeds the renter's. Before that, renting plus investing is better; after that, buying is better. It is typically 5-10 years.
Why count investment returns for the renter?+
It reflects opportunity cost: the down payment and monthly payment difference could have been invested. Including it makes the comparison of real wealth accumulation fair for both sides.
Which assumptions affect the result most?+
Home appreciation, property tax rate, and annual rent growth have the biggest impact and vary greatly by city. Adjust them to local market data.

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Rent vs Buy Calculator — free online rent vs buy, rent or buy, renting vs buying, break-even, rent vs buy calculator, is buying worth it, home buying decision. No signup required. Works in your browser.