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Rent vs Buy Calculator

Buying builds equity but comes with closing costs, maintenance and selling costs; renting lets you invest the down payment. See which leaves you better off.

Rent vs buy calculator

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Buying comes out ahead over 7 years

$12,482

Net cost to buy $147,347 vs. rent $159,829

Mortgage payment (P&I)
$1,980.71
Home value when you sell
$508,912
Equity after selling costs
$190,022
Renter's invested savings
$177,539

Net cost = everything paid minus what you keep at the end (home equity for the buyer, investment gains for the renter, who invests the down payment and any monthly savings). Tax deductions are not included.

Frequently asked questions

How long do I need to stay for buying to pay off?

Often five years or more, because buying and selling costs (around 3% to buy and 6% to sell) take years of appreciation and principal payments to recover.

What is the price-to-rent ratio?

Home price divided by a year of rent for a similar home. Ratios above about 20 tend to favor renting; below about 15 tend to favor buying.

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