Rent vs Buy Calculator
Compare the long-term financial impact of renting versus buying a home over your chosen time horizon.
Calculator Inputs
20.0% of home price
Recommendation
Buy
Save $124,139 over 10 years
Total Rent Cost
$275,133
Net Buy Cost
$150,994
Total cost minus equity
Home Equity
$292,956
After 10 years
Cost Comparison
Cumulative Costs & Equity Over Time
Rent vs Buy: What to Consider
The rent vs buy decision depends on far more than just the monthly payment. Buying builds equity through appreciation and mortgage paydown, but comes with maintenance, taxes, and insurance costs that renters avoid. Renters can invest their down payment elsewhere, which may grow faster than home equity in some markets.
Key Variables
How long you plan to stay is the most important factor. Buying typically only makes financial sense if you stay at least 5 to 7 years due to closing costs and the slow equity buildup early in a mortgage. Local home appreciation rates, rental market conditions, and your investment discipline all play a role. This calculator provides a financial comparison but does not account for lifestyle factors like flexibility, stability, or pride of ownership.
Take the Next Step
Now that you have the numbers, here are some ways to act on them.
Get Pre-Approved for a Mortgage
If buying makes sense for you, start with a pre-approval to know your budget.
Start Pre-Approval→Some links may be affiliate links. CalcWise may earn a commission at no extra cost to you.
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