Rent vs. Buy Calculator
100% in your browser — nothing is uploadedThe single biggest factor — buying rarely wins over short stays
If you buy
If you rent
What a renter could earn investing the down payment + closing costs instead
Over 7 years
Buying is cheaper
by about $16,134
How this works:"net cost" is total cash out minus value recovered — for buying, your equity at sale (including appreciation, minus the remaining mortgage and selling costs); for renting, the growth on investing the cash a buyer ties up. Lower wins. Income-tax effects (e.g. mortgage-interest deduction) are not included, and real returns vary — treat this as a directional comparison, not a guarantee.
"Renting is throwing money away" is one of the most expensive myths in personal finance, because buying has its own thrown-away money — mortgage interest, property tax, insurance, maintenance, and the closing and selling costs that bracket every purchase. The honest question isn't rent versus buy in the abstract; it's which costs you less over the specific number of years you'll actually stay. This calculator answers exactly that.
It nets out the things naive comparisons ignore: the equity and appreciation you build as an owner, the costs of getting in and out of a home, and — crucially — what a renter could earn by investing the down payment instead of tying it up in a house. The result is a single comparison of net cost over your time horizon, with the biggest lever, how long you stay, right at the top.
How to use the rent vs. buy calculator
- Set how many years you expect to stay — the single biggest factor.
- Fill in the buying side: price, down payment, rate, and ongoing costs.
- Fill in the renting side: monthly rent, expected increases, and an investment return for the cash you'd otherwise put down.
- Read which option is cheaper over your horizon and by how much.
Frequently asked questions
Why does how long I stay matter so much?
Buying has large upfront and exit costs — closing costs going in, realtor and selling costs coming out — that only pay off if spread over enough years of ownership and appreciation. Over short stays those costs dominate and renting usually wins; the longer you stay, the more buying tends to pull ahead.
What's the 'investment return' input for?
A renter doesn't tie up a down payment in a house, so they could invest that cash. Ignoring this overstates buying's advantage. The calculator credits renting with the growth that money could earn — set it to a return you'd realistically achieve.
Does this include tax benefits like the mortgage interest deduction?
No — income-tax effects vary enormously by individual and most homeowners now take the standard deduction, so including a generic deduction would mislead more than help. Treat the result as a pre-tax, directional comparison.
Is my information stored?
No. The comparison runs entirely in your browser; nothing you enter is uploaded or saved.