Rent vs. Buy Calculator
Compare the true costs of renting versus buying a home over time to make the best financial decision.
Input Parameters
Results
Rent vs. Buy Decision
Buying builds equity over time and benefits from home appreciation. Renting offers flexibility and lower upfront costs. The break-even point (when buying becomes cheaper) is typically 5-7 years in most markets.
What is the Rent vs. Buy Calculator?
The Rent vs. Buy Calculator is a massive financial simulator that answers the ultimate real estate question. It compares the unrecoverable costs of renting an apartment against the massive upfront and maintenance costs of owning a home.
How It Works (Algorithm)
The tool simulates two financial lifetimes. In the "Buy" scenario, it calculates mortgage interest, property taxes, maintenance (1% annually), and home appreciation. In the "Rent" scenario, it calculates annual rent hikes and assumes you invest your "down payment" money into the stock market instead.
$$ \text{Net Worth}_{buy} \quad \text{vs} \quad \text{Net Worth}_{rent} $$
A comprehensive multi-variable projection of total wealth.
How to Use It
Input the cost of the home you want to buy, the mortgage rate, and the down payment. Then input the cost of a comparable rental property. The calculator will pinpoint the exact "Break-Even Year" where buying officially becomes cheaper than renting.