Rent vs. Buy Calculator
Compare the long-term costs of renting versus buying to make an informed decision.
If You Buy
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If You Rent
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Time Horizon
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After 5 years
Buying is better
You save $45,000
Buying
Monthly Payment (PITI)
$2,167
Total Paid Over 5 Years
$130,000
Home Value After 5 Years
$405,600
Equity Built
$125,000
Net Cost of Buying
$85,000
Renting
Starting Monthly Rent
$2,000
Rent After 5 Years
$2,319
Total Rent Paid
$127,800
Investment Growth
$28,200
Net Cost of Renting
$99,600
Note: This calculator provides estimates for comparison. Actual costs vary based on maintenance, taxes, market conditions, and other factors.
Factors to Consider
Time Horizon
The longer you stay, the more buying makes sense. Transaction costs (6-10% when selling) need time to be offset by appreciation and equity building.
Market Conditions
In high-appreciation markets, buying builds wealth faster. In flat or declining markets, renting may preserve capital. Local conditions matter.
Opportunity Cost
Your down payment could be invested elsewhere. Compare potential stock market returns to home appreciation in your area.