Rent vs buy calculator
Estimate the total net cost of buying a home versus renting over the years you plan to stay — factoring in mortgage payments, maintenance, home appreciation, rent increases and the investment return on your savings. Free, private, and calculated right in your browser.
Last updated: 18 June 2026
⚑ An estimate, not advice
This tool provides a simplified estimate for educational purposes only, based on the assumptions you enter. It ignores many real-world factors — PMI, HOA fees, tax deductions, transaction timing and local market swings — and is not financial, tax or legal advice. Consult a licensed professional before making decisions.
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Verdict
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$0Net cost of buying
$0Net cost of renting
$0Difference
—Break-even point
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Halal home-finance options →How the rent vs buy calculator works
This tool compares the total net cost of each path over the number of years you plan to stay — not the headline price of the home, but what you actually end up out of pocket after equity and investment growth are accounted for.
Net cost of buying sums your upfront down payment, every principal-and-interest mortgage payment you make while you live there, and your yearly maintenance, property tax and insurance. From that it subtracts the equity you walk away with when you sell:
Buy = down payment + Σ mortgage payments + Σ (maintenance·price) − (appreciated value − remaining balance − 6% selling costs)
Principal and interest use the standard amortization payment M = P·[r(1+r)n]/[(1+r)n−1], where P is the loan (price − down payment), r the monthly rate and n the full term in months. We track the loan balance month by month to find what's still owed when you sell.
Net cost of renting sums the rent you pay (growing each year by your rent-increase rate), then subtracts the investment growth a renter earns by investing the money a buyer ties up: the down payment, plus any month where owning costs more than renting. Those savings compound at your assumed return rate.
Whichever path has the lower net cost is cheaper for your situation. The break-even point is the first year your stay would have to reach for buying to overtake renting — a quick gauge of whether you're staying long enough to make ownership pay off.
Frequently asked questions
How does the calculator decide which is cheaper?
It estimates the total net cost of each option over the years you'll stay. Buying = down payment + all mortgage payments + yearly maintenance/tax/insurance − the equity you keep at sale (appreciated value − remaining loan − ~6% selling costs). Renting = all rent paid − investment growth on your down payment and monthly savings. The lower number wins.
What is the break-even point for renting vs buying?
It's the number of years you'd need to stay before buying becomes cheaper than renting. Because buying carries big upfront and selling costs, it usually only pays off over a longer horizon. The shorter your stay, the more renting tends to win.
Why does renting get credited with investment returns?
A renter doesn't tie up cash in a down payment and can invest it, plus invest any month renting is cheaper than owning. To compare fairly, we grow those savings at your return rate and subtract the gain from the renter's cost — which is why a high return makes renting more attractive.
Is this rent vs buy result financial advice?
No. It's a simplified estimate based on your assumptions and ignores PMI, HOA fees, tax deductions, transaction timing and local market swings. Treat it as a starting point and consult a licensed professional before deciding.
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Sources & further reading
Standard amortization formula; U.S. Consumer Financial Protection Bureau (consumerfinance.gov) for home-buying guidance; typical 5–6% real-estate selling costs and ~1–3% annual home upkeep are common rules of thumb. Read our full disclaimer →