How does this compare renting and buying?

It adds up every monthly cost for both. The renter invests the down payment and closing costs instead, and whoever pays less each month invests the difference. At the end the buyer sells and pays selling costs.

What numbers matter most?

How long you stay, the home value change, the rent increase and the return on invested money. Try a few different values to see how the answer changes.

Does this include tax deductions?

No. Tax rules depend on your situation. Ask a tax professional.

Calculators

Rent vs buy calculator

Compares your net worth after the years you plan to stay. Whoever pays less each month invests the difference.

Your numbers

The numbers filled in are examples only. Replace them with your own.

Years you plan to stay

Monthly rent

Rent increase (percent per year)

Home price

Down payment

Interest rate (percent per year)

Loan term (years)

Property taxes (per year)

Home insurance (per year)

HOA or common charges (per month)

Upkeep (percent of home value per year)

Home value change (percent per year)

Closing costs when buying

Selling costs (percent of sale price)

Return on invested money (percent per year)

Results

Net worth if you buy: $219,483
Net worth if you rent: $216,886
Home equity after selling: $219,483
Total rent paid: $275,849
Average monthly cost to own: $3,819

Estimate only, not a loan offer or advice. Real costs depend on your lender, credit, taxes and insurance quotes.

Questions people ask

How does this compare renting and buying?: It adds up every monthly cost for both. The renter invests the down payment and closing costs instead, and whoever pays less each month invests the difference. At the end the buyer sells and pays selling costs.
What numbers matter most?: How long you stay, the home value change, the rent increase and the return on invested money. Try a few different values to see how the answer changes.
Does this include tax deductions?: No. Tax rules depend on your situation. Ask a tax professional.