Make an informed decision about renting vs buying by comparing total costs, equity building, and investment alternatives over time
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The rent vs buy decision is one of the biggest financial choices you'll make. Our calculator goes beyond simple monthly payment comparisons to show the true long-term costs of each option, including equity building, investment alternatives, and all the hidden costs of homeownership.
Comparing rent to a mortgage payment doesn't tell the whole story. Homeownership includes property taxes, insurance, maintenance, and opportunity costs. Renting lets you invest the difference. Our calculator models both scenarios over time, accounting for home appreciation, rent increases, and investment returns to show which option builds more wealth.
Net Cost Comparison
Net Cost = Total Payments - Final Equity or Investment ValueDetermine if buying makes sense for your financial situation and how long you need to stay to break even.
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This calculator provides estimates based on the assumptions you enter. Real-world results depend on actual home appreciation, investment returns, rent increases, and costs. Use it as a planning tool, not a guarantee.
A common assumption is 7% for a diversified stock portfolio (historical S&P 500 average minus inflation). Be conservative—use 5-6% for safer estimates. Higher returns favor renting; lower returns favor buying.
Buying has high upfront costs (closing costs, down payment). The longer you stay, the more time to recoup these costs through equity and appreciation. Short stays often favor renting; longer stays favor buying.
Beyond the mortgage: property taxes (1-2%/year), insurance ($1,000-3,000/year), maintenance (1-2%/year), HOA fees, closing costs (2-5%), and selling costs (6-8%). These can add 30-50% to your monthly housing cost.
This calculator shows pre-tax numbers. Tax benefits from mortgage interest deduction have diminished since 2018 (higher standard deduction). For most people, the tax benefit is minimal or zero.