Rent vs Buy Calculator — Should I Rent or Buy?
Find the exact year when buying becomes cheaper than renting. Accounts for opportunity cost on your down payment, selling costs, rent inflation, and home appreciation.
Home purchase
$
%
3% min, 20% avoids PMI
%
%
National avg ~1.1%/yr
$
%
Budget 1% of value/yr
Renting and investment
$
%
Historical avg ~3%/yr
%
Down payment in index fund
%
%
Agent fees + transfer taxes
Calculating...
Break-even year
--
Stay longer: buying wins
Buy net cost
--
Over your period
Rent net cost
--
Over your period
You save
--
By choosing the winner
Monthly mortgage P+I--
Monthly all-in ownership cost--
Monthly rent (year 1)--
Home value at end of period--
Equity at exit (after selling costs)--
Down payment invested grows to--
Buying total cost
--
Mortgage payments--
Property taxes--
Maintenance--
Insurance + HOA--
Selling costs--
Minus equity gained--
Net cost of buying--
Renting total cost
--
Total rent paid--
Down payment invested--
Portfolio grows to--
Investment gain--
Net cost of renting--
Cumulative net cost year by year
Lower bar = cheaper. Watch for the crossover.
Run the calculator to see the chart.
BuyingRenting
Four things most calculators miss: (1) Opportunity cost on the down payment invested. (2) Selling costs of 5-6% when you sell. (3) Full ownership cost including tax, insurance, maintenance. (4) Rent inflation compounding year after year.