Rent vs Buy Calculator
Compare the long-term cost of renting versus buying a home. Free rent vs buy calculator showing total costs and the break-even year.
About the Rent vs Buy Calculator
Deciding whether to rent or buy a home is one of the biggest financial choices most people make. This free rent vs buy calculator compares the total cost of each option over a time horizon you choose, factoring in rent, the purchase price, down payment, mortgage, ongoing ownership costs and home appreciation, then finds the break-even year.
Renting has a clear cost — rent, which typically rises over time — while buying mixes a large upfront cost, monthly mortgage payments and maintenance against the equity you build and any rise in the home's value. The calculator nets these out to show which option costs less over your horizon and when buying overtakes renting.
Anyone weighing a home purchase against continuing to rent uses this to move past gut feeling. It uses simplified assumptions and is educational, not financial advice. Everything computes in your browser with no signup.
How to Use the Rent vs Buy Calculator
- 1Enter your current monthly rent and its expected annual increase.
- 2Enter the home price, down payment, mortgage rate and term.
- 3Add ongoing costs like maintenance and the expected home appreciation.
- 4Set your time horizon and read the total costs and break-even year.
Frequently Asked Questions
Is it cheaper to rent or buy?
It depends on how long you stay, local prices, interest rates and how fast homes appreciate. Buying has high upfront costs that take years to recover, so short stays favour renting and long stays usually favour buying. The break-even year this calculator finds is the key number.
What is the break-even year in a rent vs buy decision?
It is the year at which the cumulative cost of buying drops below the cumulative cost of renting. Before it, renting is cheaper because of the upfront purchase costs; after it, buying wins. If you expect to move before the break-even year, renting is likely the better financial choice.
What costs does buying include beyond the mortgage?
Beyond the down payment and monthly mortgage, ownership means maintenance, property tax, insurance and often society or maintenance charges. These recurring costs can add a meaningful amount and are easy to underestimate, so the calculator includes a maintenance input.
Does building equity make buying always better?
No. Equity and appreciation help, but they must outweigh the interest, maintenance and opportunity cost of the down payment. In a slow market or over a short period, renting and investing the difference can leave you better off. This calculator nets equity against all the costs.