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Rent vs Buy Calculator

Rent vs Buy Calculator Compare both paths over the same horizon, with ownership cash spending, sale proceeds and opportunity cost kept visible.

Rent vs Buy Calculator estimate

Monthly rentHome priceDown payment (%)Note interest rate (%)Years to compareTax + insurance + maintenance / mo

Advanced assumptions

Mortgage term (years)Buying closing costs (paid upfront)Selling costs (% of home value)Annual rent and renters-insurance growth (%)Annual ownership-cost growth (%)Annual home appreciation (%)Annual alternative return / discount rate (%)Renters insurance per month

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Your estimate

Enter values, then calculate.

How the estimate works

Owning includes upfront down payment and buying costs plus monthly mortgage and ownership outflows, less the net proceeds of selling at the selected horizon. Renting includes rent and renters insurance. Discount both paths' dated cash flows to today using the same alternative-return assumption.
Change one assumption at a time to compare scenarios.
Use current balances, rates, costs, and timelines whenever possible.

Important limitation

This is a hypothetical fixed-rate comparison, not a recommendation. It excludes taxes on gains, deductions, investment taxes, refundable rent deposits, moving expenses and property-specific risks. Net sale equity may be negative. Zero growth/discount defaults preserve the simpler original scenario; they are not forecasts. Results are estimates only and are not financial, lending, legal, tax, or investment advice.

Assumptions and review

Formula review: September 25, 2026. This tool uses only the values shown above and does not pull live rates, balances, prices, or account data.

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Frequently asked questions

How is opportunity cost included?

The same discount rate converts each path's future cash outflows and final sale proceeds into present values. This avoids separately subtracting an invented investment portfolio and double-counting the down payment.

Is mortgage principal an expense?

It is a cash outflow, but it reduces the loan balance. Subtracting net sale equity later credits that accumulated ownership value rather than counting principal as an unrecoverable cost.

Can buying become cheaper and then more expensive?

Yes, under some assumptions. The reported year is only the first sampled annual crossing; use the table and compare several horizons.