🏘️ Rent vs. Buy Calculator

Compare the true long-term cost of renting versus buying.

🏠 If You Buy

🔑 If You Rent

Assumes the down payment + any monthly savings vs. buying are invested instead.

How This Is Calculated

Buying: total mortgage payments, maintenance, taxes, and insurance over the period, minus your final home equity (home value at appreciation minus remaining mortgage balance). Renting: total rent paid (increasing annually) minus the ending value of your down payment and any monthly savings (rent vs. buy payment difference) invested at your assumed return.

Frequently Asked Questions

Is buying always better than renting long-term?
Not always — it depends on how long you stay, local appreciation, mortgage rates, and what alternative investments could earn. Buying tends to win over long horizons with steady appreciation, but renting and investing the difference can outperform buying for short stays or slow-appreciation markets.

Guide: understanding your result

Key points
  • Owning costs more than the mortgage payment: property tax, insurance, maintenance (often budgeted at about 1% of value per year), HOA dues and closing costs.
  • Buying tends to favor people who stay longer, because transaction costs are spread over more years.
  • The price-to-rent ratio (home price ÷ annual rent) is a quick first comparison for a local market.

Worked example

A $400,000 home with 20% down at 6.76%: principal & interest $2,078, plus property tax (1.1%), insurance ($1,800/yr) and maintenance (1%) ≈ $2,928 a month, before considering equity built and home value changes. Compare that with the rent for a similar home — the calculator above adds the long-run factors.

Common mistakes to avoid

Official sources

Examples are calculated live from the same data the calculator uses and are for education only — they are not financial, tax or investment advice.

⚠️ This calculator is for general informational and educational purposes only. It does not constitute financial, tax, legal, or other professional advice, and results are estimates that may not reflect your exact situation. This tool provides a simplified estimate for general educational purposes and does not constitute financial or investment advice — actual outcomes depend on local market conditions, taxes, and many factors not modeled here. GelirLab.com and its owners accept no liability or responsibility for any decision made or action taken based on this tool. Always consult a qualified professional (CPA, financial advisor, or attorney) before making financial decisions.
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✔ Reviewed by GelirLab Editöryal Ekibi · How we check our calculators

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