⚔️ Rent vs Buy Calculator
Buying builds equity but starts with a down payment and years of mostly-interest payments. This calculator totals what buying really costs you over your planned stay \u2014 down payment plus interest paid, minus the principal you get back \u2014 and sets it against total rent for the same period.
The maths ignores home price changes, tax breaks and rent rises, so use the verdict as a starting point and adjust for your local market.
How to use this calculator
Enter the home price, down payment, loan details, monthly rent and how many years you will stay to compare the true cost of buying against renting.
- Type the Home price, Down payment, rate and Loan term.
- Enter the Monthly rent for a comparable place.
- Set how many Years you plan to stay.
- Press Calculate to see which option costs less overall.
Frequently asked questions
How is the cost of buying measured?
Total cash out (down payment plus all monthly payments) minus the principal you repaid, which is equity you keep. What remains is the down payment plus the interest paid: the true cost of buying.
What does the verdict row mean?
It names the cheaper option over your planned stay and shows by how many dollars it wins. The other rows let you check the parts.
Can you walk through an example?
Buying a $300,000 home with $60,000 down at 6.5% over 30 years and staying 7 years costs about $164,424 net, while $1,800 rent totals $151,200, so renting saves about $13,224 over those 7 years.
What is left out?
Home price changes, rent increases, tax deductions, maintenance and the value of flexibility. Treat the result as a baseline and adjust for your market.