Rent vs. Buy Calculator
Compare the true cost of renting and buying over your time horizon and get a clear verdict.
Over 7 years
Buying cost nets out equity built and home appreciation against payments, taxes and insurance. Lower net cost wins.
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Get my personalized quoteAbout this calculator
The rent vs. buy calculator compares the real, net cost of renting versus owning over the number of years you expect to stay. It is not as simple as comparing rent to a mortgage payment: buying involves a down payment, taxes, insurance and closing costs, but it also builds equity and benefits from home appreciation.
Our model nets the equity you build and the appreciation you gain against the payments and carrying costs of owning, then compares that to the total rent you would pay — adjusted for annual rent inflation — over the same horizon. The result is a clear verdict telling you which option costs less and by how much.
Your time horizon matters enormously. Because buying has high upfront costs, owning usually wins only if you stay long enough to outgrow them, often five to seven years or more. Adjust the appreciation and rent-inflation assumptions to stress-test the decision, then get a personalized quote when buying makes sense.
Frequently asked questions
- Is it cheaper to rent or buy?
- It depends on your time horizon, the price-to-rent ratio in your area, interest rates and how fast home values and rents rise. The calculator nets all of these out to give you a clear answer for your inputs.
- How long should I plan to stay before buying makes sense?
- Because closing costs and the down payment are large upfront expenses, buying typically pays off only if you stay long enough to build equity — often around five to seven years, though it varies.
- Does home appreciation guarantee buying is better?
- No. Appreciation helps, but it is not guaranteed and markets can fall. The calculator lets you test conservative and optimistic appreciation rates so you can see the range of outcomes.
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