Rent vs. Buy Calculator

A fair rent-vs-buy comparison over N years. Accounts for what you actually spend on both sides: mortgage + taxes + insurance + maintenance vs. rent, plus what a renter earns by investing the down-payment difference in the market.

Time Horizon

Years to Compare

Buying

Home Price ($)

Down Payment ($)

Mortgage Rate (% APR)

Mortgage Term (Years)

Property Tax (%/yr)

Insurance ($/yr)

Maintenance (%/yr of home price)

Home Appreciation (%/yr)

Selling Costs (% of sale)

Renting

Monthly Rent ($)

Rent Growth (%/yr)

Investment Return (%/yr)

Verdict

Breakdown

Why most rent-vs-buy calculators lie

The naive comparison — “$2,200 rent vs. $2,000 mortgage, buying wins!” — ignores the biggest costs on the buying side (property tax, insurance, maintenance, selling costs) and the biggest earning opportunity on the renting side (investing the down payment). Both matter. A lot.

What this calculator actually compares

Over your chosen horizon, we track the buyer's total out-of-pocket: mortgage payments + property tax + insurance + maintenance, then at horizon end subtract the home's appreciated sale value minus remaining mortgage balance minus selling costs. That leaves the buyer's net cost.

For the renter, we track cumulative rent (growing yearly) plus a parallel investment portfolio: the renter starts with the down payment invested, and each month adds any dollar amount by which the buyer's costs exceed the renter's costs. That portfolio compounds at your chosen return rate. The renter's net position at horizon is portfolio value minus rent paid.

What this does not model

Mortgage-interest tax deduction (mostly moot post-2017 for most filers), PMI, HOA fees, moving costs, quality-of-life factors (yard, control, stability), housing-market crashes, or the psychological value of paying off a mortgage vs. a landlord. Do not treat the answer as gospel — treat it as a starting point for the parts you can actually price.