Compare renting and buying using home equity, selling costs, rent increases, maintenance, taxes, insurance, and the opportunity cost of investing cash instead of using it to buy.
Decision insightTime horizon matters
Short stays often make transaction costs harder to recover.
Inputs
Compare the Same Housing Choice Over Time
Use local rent, realistic ownership costs, and a time horizon that matches how long you expect to stay.
Buying assumptions
Ownership costs and growth
Renting and opportunity cost
Rent vs buy estimateCalculate
Result will appear here.
Estimated advantage$0
Break-even yearN/A
Buy ending position$0
Rent ending position$0
Monthly P&I$0
Net sale proceeds$0
Ending position comparison
Bars compare estimated ending positions after the expected stay.
Formula used
Buying position = net sale proceeds plus invested monthly savings. Renting position = invested unused purchase cash plus invested monthly savings plus returned deposit.
Method
What Makes This Rent vs Buy Calculator Different
This calculator compares estimated ending positions instead of only adding up monthly bills. Buying can create home equity, but it also uses a down payment, closing costs, maintenance, taxes, and selling costs. Renting can avoid those purchase costs, but rent may rise and the renter does not build home equity.
The model assumes unused purchase cash can be invested while renting. It also invests the monthly difference for whichever option is cheaper in a given month. That makes the result more decision-oriented than a simple rent-versus-mortgage comparison.
Buyer reality check
Compare More Than the Mortgage Payment
The CFPB encourages buyers to review loan costs and cash needed to close before choosing a mortgage. A rent vs buy decision should also include taxes, insurance, maintenance, transaction costs, and flexibility.
Why does the calculator use ending position instead of total cost only?
Buying creates or loses equity, while renting can leave cash available to invest. Ending position captures both sides more clearly than a bill total alone.
Does this include tax deductions?
No. Tax benefits vary widely by household and law. Add tax effects separately if they are material to your case.
Why does selling cost matter?
If you sell after a short period, agent commissions and other selling costs can absorb a large part of home equity growth.
What if I will not sell after the expected stay?
Use a longer stay period or treat the result as a liquidity comparison rather than a sale outcome. The model assumes a sale at the end of the period.
Is the break-even year guaranteed?
No. It depends entirely on assumptions such as appreciation, rent growth, investment return, mortgage rate, and ownership costs.
Disclaimer
This calculator is for general informational purposes and simple arithmetic checks. It is not financial, tax, legal, real estate, or mortgage advice. Verify costs, rents, appreciation assumptions, tax effects, loan terms, and transaction costs with qualified professionals before making a housing decision.