Real Estate

Rent vs Buy Calculator

The biggest financial decision, broken down
Rent vs buy isn’t just a math problem — it’s a lifestyle choice with decades of financial consequences. This calculator models the full cash outflow of both paths: rent payments on one side, mortgage, down payment, closing costs, and maintenance on the other. Compare the curves and see where they cross.

General rule of thumb

If monthly rent > 0.5% of purchase price,
buying usually wins over 7+ years

Compare your numbers

Decision framework

Which path is right for you?

The answer depends on your timeline. Here’s a framework to guide your thinking.

Renting wins when…

You’ll move within 5 years
Rent is below 5% of home price annually
You value flexibility over equity

Buying wins when…

You’ll stay 7+ years
Monthly rent exceeds 0.5% of purchase price
You’re building a long-term asset

Hidden costs

What rent-vs-buy calculators often miss

Three costs that make buying more expensive than the sticker price suggests.

3% of purchase price

Closing costs

Legal fees, title insurance, land transfer tax, and appraisal costs. Paid upfront before you get the keys — not rolled into the mortgage.

1% of home value / year

Maintenance

Roof, HVAC, plumbing, appliances. Renters don’t pay this. Homeowners budget $4,200/year on a $420K home — that’s $350/month in hidden spend.

Down payment invested elsewhere

Opportunity cost

A $84K down payment invested at 7% annual return would grow to $164K in 10 years. The calculator factors only cash outflows — this is the missing piece.

Run the numbers

Stop guessing. Model both paths.

Enter your monthly rent and the home price you’re considering. Slide the years. See which path costs less.

Compare rent vs buy