Rent vs Buy Calculator
Your cost breakdown after 3 years
Should you rent or buy a home?
This calculator helps you compare the long-term costs of renting versus buying a home. By evaluating mortgage payments, interest, down payment, and rental expenses, it guides you toward a more financially sound decision based on your goals and situation.
How the rent vs buy calculator works
This tool analyzes the true cost of renting and buying based on your financial input:
Compares mortgage payments with current rental rates
Includes down payment, interest rate, and loan period
Projects total costs over multiple years
Shows when buying becomes cheaper than renting (break-even point)
Key factors to consider
When deciding between renting and buying, consider the following:
Length of stay: Buying usually becomes cost-effective after 5–7 years
Market trends: Rising property values can make ownership more appealing
Flexibility: Renting may be better if your plans are uncertain or short-term
Upfront costs: Buying requires more initial capital (down payment, fees)
Monthly vs annual vs total costs
This calculator breaks down your financial comparison in three ways:
Monthly costs: Regular payments including rent or mortgage
Annual costs: Adds yearly maintenance, taxes, insurance, and rent increases
Total costs: Includes equity buildup for buyers and rent paid over time
When buying makes more sense
Buying might be the better option if:
You plan to live in the property long-term
Home prices in your area are stable or rising
Rental costs are high compared to mortgage payments
You want to build equity and take advantage of tax deductions
When renting might be the better option
Renting may be a smarter financial choice if:
You're staying in the area for less than 3–5 years
You're not ready for the responsibilities of ownership
The housing market is unstable or overpriced
You want maximum flexibility for relocation or lifestyle changes
Why use the Rent vs Buy Calculator?
Rent vs Buy Calculator removes the guesswork from one of the biggest financial decisions you’ll make. Whether you're buying your first home or planning to rent long-term, the calculator helps you understand the full cost over time and compare options side by side.