Rent vs. Buy Calculator with Total Cost
Compare monthly cost and long-run net cost
Rent vs. buy calculator: quick guide
This Rent vs. Buy Calculator with Total Cost helps you compare today’s monthly budget and the long-run net cost of renting or owning over a realistic time horizon. The tool keeps inputs in straight lines for mobile and puts answers first: a headline “winner,” breakeven time, and a clean summary with total outflows, the asset you keep (invested cash for renters or net home equity for buyers), and the final net-cost difference. You can also download a full month-by-month CSV for spreadsheets.
Getting reliable inputs: start with your current monthly rent and a sensible rent growth rate from local listings. Set a horizon—five to thirty years is common. For the buy case, enter price, down payment %, mortgage APR, and term. Add annual property tax as a percent of price, homeowners insurance per year, a maintenance allowance (many owners use 1–2% of price per year), and any HOA dues. Enter buyer closing costs as a % of price and the selling costs you might pay at the end of the horizon. Market fields let you test appreciation for the home and the investment return on cash you’d keep if you rent.
- Monthly cost today: rent + renter’s insurance vs. mortgage payment + tax, insurance, maintenance, HOA.
- Breakeven time: first month the buy net cost is ≤ rent net cost.
- Net cost: total outflows minus the asset you keep (renter’s invested cash or owner’s net equity after selling costs).
Reading the summary: if buying wins quickly, confirm sensitive fields—APR, property tax, HOA, and appreciation. If breakeven is far beyond your expected stay, renting often wins on flexibility and cash flow. The snapshot highlights Month 1, Month 6, Month 12, a midpoint, and the final month so you can sanity-check the trajectory without scrolling a long table. Use the CSV to add income tax effects or escrow changes if you need more detail.
Tips: when renting wins, try a larger down payment, a longer term, or lower-tax neighborhoods. When buying wins but the monthly owner cost feels tight, consider a slightly longer term and plan optional principal prepayments later. Always compare lenders by APR, request a full loan estimate, and stress-test appreciation from negative to positive. This model focuses on principal-and-interest math; it does not include mortgage insurance, utilities, repairs beyond your maintenance allowance, or tax deductions. Treat outputs as planning data to guide your next steps.
How the rent vs. buy math works
Mortgage payment is PMT = L·r·(1+r)^n / ((1+r)^n − 1) with L loan, r=APR÷12, n months. Owner monthly cost = PMT + tax + insurance + maintenance + HOA. Home value at month t uses monthly growth g=app/12: Price·(1+g)^t. Net equity at sale = Value·(1 − sell%) − remaining loan. Renter asset is the future value of upfront cash (down + buyer closing) grown at monthly rate i=inv/12. Net cost over horizon = total outflow minus the asset kept. Breakeven is the earliest month with BuyNet ≤ RentNet.
Rent vs. buy FAQs
Do you invest monthly savings differences?
This version focuses on upfront cash opportunity cost. You can approximate investing monthly differences by exporting CSV and adding a column in a spreadsheet.
Are taxes or mortgage insurance included?
No. The model covers principal and interest plus typical owner costs (tax, insurance, maintenance, HOA). Add MI and tax effects in the CSV if needed.
Should I match the remaining term?
Use a term you’d pick if buying today. Longer terms lower monthly cost but may raise total interest.
Is this financial advice?
No—the calculator provides planning estimates to compare scenarios side by side.