Rent vs Buy Calculator
Compare the financial pros and cons of renting vs buying.
How to Do It Manually
Compare renting vs. buying by calculating total costs over time, including rent/mortgage, taxes, maintenance, and appreciation.
Total Cost (Buy) = (monthly mortgage × months) + property taxes + maintenance − appreciation
- Calculate total rent paid over your timeline.
- Calculate total homeownership costs: mortgage payments + taxes + insurance + maintenance.
- Account for home appreciation (typically 3–4% annually).
- Compare total costs.
Frequently Asked Questions
When does it make sense to buy?
If you plan to stay 5–7+ years, buying often becomes better than renting due to equity build-up.
What's the 28/36 rule?
Spend max 28% of income on housing, 36% on total debt. A $50k salary supports ~$1,167/month housing.