Rent vs. Buy Calculator: Find Out Which Makes More Sense

Thinking about whether you should keep renting or finally buy a home? 🤔 That’s one of the biggest financial decisions you’ll ever make. Our Rent vs. Buy Calculator makes it simple to see which path could be smarter for your situation.

How It Works

The calculator compares two things:

• Renting: Your monthly rent, rent increases over time, and potential returns if you invest the money you would have spent on a down payment.
• Buying: The upfront costs (down payment + closing), ongoing expenses (mortgage, taxes, insurance, maintenance), and the value you get back when you sell later.

At the end, you’ll see:

• The net cost of renting over your chosen time horizon.
• The net cost of buying.
• The difference (so you’ll know which option saves you more 💵).
• Estimated monthly mortgage payments.

How to Use It

1. Enter Home Details
   • Home price
   • Down payment (percent or amount)
   • Loan rate and term (like 30 years at 6.75%)
2. Add Expenses
   • Property tax, insurance, and maintenance (as a % of the home’s value)
   • Closing costs
3. Factor in Appreciation & PMI
   • Expected annual home value growth
   • PMI (if your down payment is under 20%)
4. Enter Rent Numbers
   • Current monthly rent
   • Expected annual rent increases
   • Investment return (if you put your down payment into the market instead of a house)
5. Set Your Time Horizon
   • How long do you plan to stay (5 years, 7 years, etc.)
6. Check Advanced Options (Optional)
   • Seller costs when you sell
   • Any seller credits
7. See the Results
   • Instantly compare renting vs. buying.
   • If the pill says “Buy looks better” ✅, then buying might save you long-term.
   • If it says “Rent looks better” 🏢, then waiting could be smarter.

Why It Matters

The rent vs. buy decision isn’t just about monthly payments—it’s about long-term net cost. With this calculator, you can:

• Test different scenarios (what if rates go up? what if rent rises faster?).
• See the impact of investing instead of buying.
• Make a decision with real numbers instead of guesswork.

Try It Out

👉 Plug in your numbers, and let the Rent vs. Buy Calculator do the math for you.

Remember: this is an estimate tool. Talk to a lender or financial advisor before making big decisions.