Rent vs Buy Calculator
Trying to decide whether to rent or buy? This calculator compares the monthly and multi-year cost of owning a home — mortgage, taxes, insurance, and maintenance — against renting, so you can see which fits your budget and goals.
Formula reviewed for accuracy. Our methodology & sources
Rent vs Buy Calculator
mortgage calculator
How It Works
Owning costs more than just the mortgage: we add estimated property tax, homeowner's insurance (~0.35%/yr), and maintenance (~1%/yr). Renting is simpler but builds no equity. The right choice also depends on how long you'll stay — buying usually wins over longer horizons.
Formula
Cost to Own = Mortgage P&I + Property Tax + Insurance + Maintenance. Compared against your monthly rent.
Examples
$400K home vs $2,200/mo rent
Compares full ownership cost against renting.
Frequently Asked Questions
Is it better to rent or buy?
It depends on how long you'll stay, local prices, and rates. Buying builds equity and hedges against rising rents but has high upfront and maintenance costs. Renting offers flexibility and lower responsibility. Buying typically wins if you stay 5+ years.
What costs does owning add beyond the mortgage?
Property taxes, homeowner's insurance, maintenance and repairs (budget ~1% of home value per year), HOA fees, and closing costs. This calculator includes estimates for tax, insurance, and maintenance.
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