Rent vs Buy Calculator
Which is cheaper over the years you plan to stay.
Enter your values
ⓘ Live results
Results
- Cheaper option
- Buying
- Total cost of renting
- $173,040.00
- Net cost of owning
- $132,799.29
- Estimated home value at sale
- $491,949.55
- Equity at sale
- $202,617.56
Quick answer
Buying beats renting once appreciation and equity outweigh the interest, tax, maintenance and transaction costs of ownership — usually after five or more years.
How to use the Rent vs Buy Calculator
- 1Enter your current rent and the price of the home.
- 2Add down payment, rate and how long you will stay.
- 3Compare the two totals.
Worked example
Using the values the calculator loads with:
Inputs
- Monthly rent2000 $
- Home price400000 $
- Down payment80000 $
- Mortgage rate6.5 %
- Years you will stay7 years
- Home appreciation per year3 %
Results
- Cheaper optionBuying
- Total cost of renting$173,040.00
- Net cost of owning$132,799.29
- Estimated home value at sale$491,949.55
- Equity at sale$202,617.56
Frequently asked questions
What is the break-even point?
Typically five to seven years, because closing and selling costs of roughly 8–10% need time for appreciation and equity to absorb.
Are maintenance costs included?
Yes, at 2% of the home value per year, which covers repairs, insurance and property tax as a blended estimate.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.