Rent vs. Buy Calculator
See which actually costs less over time — renting and investing the difference, or buying and building equity.
Buying
Renting
The real comparison isn't just rent vs. mortgage payment
Buying builds equity through appreciation and principal paydown, but comes with property tax, maintenance, and a down payment that could otherwise be invested. Renting has no equity, but the money not spent on a down payment and the (often smaller) rent-vs-mortgage difference can be invested instead. This tool nets out both sides over your chosen time horizon.
Also useful: Loan & Mortgage Calculator and Real Estate Deal Calculator.
Frequently asked questions
If invested, the down payment and any monthly savings from renting instead of owning can grow at the market rate, which can outpace home appreciation, especially over shorter horizons before you'd sell — buying tends to win more clearly the longer you stay.
This model doesn't include selling costs (typically 6-10% of sale price), mortgage insurance, HOA fees, or the psychological/lifestyle value of ownership — all of which can shift the real-world answer.
A lot — buying has high upfront transaction costs that get amortized over time, so a longer stay generally favors buying, while a shorter stay (under ~3-5 years) often favors renting even when the numbers look close.