Rent vs Buy Calculator
Should you rent or buy? Our free rent vs buy calculator compares total renting costs against buying costs over your planned years to show which is cheaper.
About this tool
Renting feels like throwing money away - until you add up the true cost of buying. Our free rent vs buy calculator compares both paths over the years you actually plan to stay.
It assumes a standard 30-year fixed mortgage, then nets your down payment and payments against the equity you build. The verdict tells you which option costs less.
How to use
Enter your current monthly rent and the home price you are considering, plus the down payment you can afford. Add the mortgage interest rate and how many years you plan to stay in the home.
Press Compare to see total rent cost, the net cost of buying (payments minus equity built), and a verdict with the dollar difference.
The math behind it
Total rent is simply monthly rent times months. Buying cost is modeled as: down payment + mortgage payments made - principal repaid (equity gained). Early mortgage payments are mostly interest, so short stays build little equity and buying usually loses.
The longer you stay, the more each payment shifts toward principal, and buying pulls ahead. This is why the breakeven point is often around 5 to 7 years.