Rent vs Buy Calculator

Compare the long-term financial outcome of buying a home versus renting and investing.

Start with the property you’re considering buying.

Expected purchase price ($)

The listing price or your target budget for the home you’re considering buying.

Down payment

Percent (%)

Amount ($)

Enter either percent or dollar amount. We’ll calculate the other. 20% avoids PMI in most conventional loan scenarios.

Mortgage interest rate (%)

The annual rate on your mortgage. Check current rates at Bankrate.com or ask your lender.

Loan term

15-year loans build equity faster but have higher payments. 30-year loans are easier on monthly cash flow.

Ongoing costs you’d pay as a homeowner.

Property tax rate (% annually)

Annual property tax as a % of home value. Typically 0.5%–2.5% depending on state. Check your county assessor’s website.

Home insurance ($ annually)

Annual homeowner’s insurance. Rough estimate: $1,000–$2,500/year depending on home value and location.

HOA dues ($/month)

Monthly HOA fee. Enter 0 if no HOA.

Annual maintenance (% of home value)

Rule of thumb: budget 1–2% of home value per year for repairs and maintenance.

Buyer closing costs ($)

Typically 2–5% of home price. Covers appraisal, title insurance, loan origination fees, etc.

What would it look like if you rented instead?

Current monthly rent ($)

What you pay (or would pay) to rent a comparable home in the same area.

Expected rent increase (% per year)

Historical US average rent growth is ~3–4% per year. Adjust for your local market.

Time horizon (years)

How long you plan to stay in this area. The longer your horizon, the more buying typically wins financially.

Expected home appreciation (% per year)

Long-term US average is ~3–4%. Adjust for your local market — hot markets may be higher, rural areas lower.

Investment return if renting (% per year)

If you rent and invest the down payment instead, what return do you expect? S&P 500 long-term average is ~7% real.

We model both paths in full: buying a home with a mortgage vs. renting and investing the difference over your chosen time horizon.