Rent vs. Buy Calculator

See whether buying or renting makes more financial sense for your situation over time.

Buying

$450,000
100,0002,000,000
20% ($90,000)
350
6.50%
212
30 yr
1030
1.20%
0.23.5
$1,800
50010,000
None
01,000
1% of home value
0.53
3.50%
08
3% ($13,500)
16

Renting

$2,400/mo
50010,000
3.00%
010
7.00%
012

Time Horizon

7 yr
130
Over 7 years
Renting wins
by $160,602 net
Renting is cheaper for all 7 years at this rate

Monthly Cost Breakdown

Mortgage payment
$2,275
Property tax
$450
Insurance
$150
Maintenance
$375
Total buying cost/mo$3,250
Monthly rent$2,400

Upfront to Buy

Down payment$90,000
Closing costs$13,500
Total cash needed$103,500

Net Cost Over Time

Yr 1
Buy
$122,732
Rent
$10,999
Yr 2
Buy
$141,489
Rent
$21,615
Yr 3
Buy
$159,747
Rent
$31,788
Yr 4
Buy
$177,478
Rent
$41,451
Yr 5
Buy
$194,656
Rent
$50,531
Yr 6
Buy
$211,249
Rent
$58,951
Yr 7
Buy
$227,226
Rent
$66,624

Net cost = total spent minus equity gained (buy) or investment growth (rent).

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This calculator provides estimates for educational purposes only and does not constitute financial advice. Results depend on many factors including local market conditions, taxes, and personal circumstances. Consult a licensed financial advisor before making real estate decisions.