Rent vs. Buy Calculator
Compare renting against buying on a monthly basis. Enter the home price and financing plus your rent to see the monthly cost of owning versus renting and the difference.
Example: with Home price $400,000 · Down payment 20% · Interest rate 6.5% · Loan term 30 yrs → Monthly cost to own: $2,781.
- Monthly rent$2,200
- Monthly difference+$581/mo
- Mortgage (P&I)$2,022.62
Computed by the calculator below using its default values. Change any input to see your own numbers.
Cumulative cost: buy vs rent
Rent vs. buy over time
🔑 Compare mortgage rates & lenders
Get quotesA monthly cost comparison
This compares the all-in monthly cost of owning — mortgage, taxes, insurance, HOA, and a maintenance reserve — against your rent. It deliberately keeps things simple: it does not count home-equity build-up, appreciation, tax deductions, or the opportunity cost of your down payment. Buying often looks more expensive monthly but builds wealth over time, so use this as one input, not the whole decision.
How it’s calculated
Monthly cost to own = mortgage + tax + insurance + HOA + maintenance reserve, compared to rent. It excludes equity build-up and appreciation.
The optional breakeven year adds home appreciation, rent growth, an investment return on the down payment, a mortgage-interest tax benefit, and selling costs: it compares the cumulative cash spent owning (minus what you'd net at sale) against the cumulative cash spent renting (minus what the down payment could have earned invested), and reports the first year owning's net cost drops below renting's.
Results update as you type and are estimates, not professional advice — verify important decisions with a qualified professional.
Common mistakes
- Reading the monthly gap as the full answer — it ignores equity and appreciation.
- Forgetting maintenance in the cost of owning.
Frequently asked questions
Does buying build equity?
Yes — part of each mortgage payment pays down principal, and the home may appreciate. This monthly view doesn't credit that, so owning's true cost is usually lower than it appears here.
What maintenance rate should I use?
About 1% of the home's value per year is a common rule of thumb, higher for older homes.
When does renting win?
Often when you'll move within a few years, since buying costs (closing, selling) are spread over a short time.