WorldCalcs

Rent vs Buy Calculator

Compare the total cost of buying a home with the total cost of renting over the years you expect to stay.

Reviewed by the WorldCalcs team · Methodology · Last reviewed: June 2026

Buying

Renting

Both

Net cost to buy

159 663.98

Net cost to rent

183 899.09

Buying is cheaper by 24 235.12 over 7 years.

Breakdown

  • Monthly P&I: 2 022.62
  • Total P&I paid: 169 899.88
  • Property tax: 33 714.83
  • Maintenance: 30 649.85
  • Insurance: 10 500.00
  • HOA: 0.00
  • Buying closing: 8 000.00
  • Home value end: 491 949.55
  • Selling cost: 29 516.97
  • Remaining balance: 289 331.98
  • Net sale proceeds: 173 100.59
  • Total cash out (buy): 332 764.57

This calculator is for general information only and is not financial advice. Results are estimates that depend on your assumptions. See our full disclaimer.

What is a rent vs buy calculator?

A rent vs buy calculator compares the total cost of owning a home with the total cost of renting over the years you expect to stay. Buying involves a mortgage, property tax, insurance, maintenance, and one-off closing and selling costs — but you also get back equity and any increase in the home's value when you sell. Renting is simpler: you pay rent that usually rises over time, with nothing recovered at the end. This tool adds it all up and tells you which option costs less over your chosen time frame.

How it's calculated

For buying, the calculator works out the monthly mortgage payment, then sums the payments and ownership costs (tax, maintenance, insurance, and any HOA fees) over the years you stay, with tax and maintenance scaling as the home's value grows. It adds the down payment and closing costs, then subtracts what you net from selling — the home's projected value minus selling costs and the remaining loan balance. For renting, it sums the rent over the same years, increasing it each year by your assumed rate. The lower net figure is the cheaper choice.

Example

Take a 400 000 home with 80 000 down, a 6.5% mortgage over 30 years, 1.1% property tax, 1 500 insurance, 1% maintenance, 2% buying costs, 6% selling costs, and 3% yearly appreciation, compared with 2 000 rent rising 3% a year — over 7 years. The mortgage payment is 2 022.62 a month. After totalling payments, ownership costs, and closing costs, then subtracting the 173 100.59 you net from selling, the net cost to buy is 159 663.98. Renting over the same 7 years costs 183 899.09. Here, buying is cheaper by about 24 235.12 — but change the time frame or appreciation rate and the answer can flip.

What this model leaves out

To stay simple and apply anywhere, this calculator uses a straightforward cash-cost comparison. It does not model income-tax effects (such as mortgage-interest deductions, which vary by country and situation), and it does not assume you invest the money a renter saves on a down payment. Both can shift the result. It also relies on your assumptions for appreciation and rent increases, which are uncertain. Treat the output as a clear baseline comparison, then adjust the assumptions to test how sensitive the answer is.

Related: see our Mortgage Calculator and Loan Calculator.

All calculations happen in your browser. Nothing is sent, stored, or tracked.

Results are estimates and may contain errors — for general information only, not professional advice. Always verify before relying on them. Disclaimer

How to use

Fill in the buying assumptions (price, down payment, mortgage rate and term, taxes, maintenance, closing and selling costs, appreciation), the renting assumptions (rent and yearly increase), and how long you'll stay. The lower net figure is the cheaper choice.

The model excludes income-tax effects and does not assume you invest a renter's savings. Treat it as a baseline comparison and stress-test your assumptions.

Frequently asked questions

Is it cheaper to rent or buy?+

It depends on how long you stay, the price, the mortgage rate, and how fast prices and rents rise. Buying tends to win the longer you stay, because one-off costs are spread over more years and equity builds. Over short periods, the buying and selling costs often make renting cheaper. Enter your own figures to see your break-even.

How many years until buying beats renting?+

This is the "break-even" point — the number of years after which buying becomes cheaper than renting. You can find it by changing the "years you'll stay" until the net cost to buy drops below the net cost to rent. Higher buying and selling costs push the break-even further out.

Why do selling costs matter so much?+

Selling a home typically costs several percent of its value in fees, and that comes off your sale proceeds. Over a short stay this cost is spread across few years, making buying look expensive. Over a long stay it barely moves the yearly cost, which is why owning usually wins with time.

Does this include tax benefits?+

No. The model deliberately excludes income-tax effects such as mortgage-interest deductions, because they differ widely by country and personal situation. If such benefits apply to you, buying could look better than the baseline result shown here.

What appreciation rate should I use?+

Use a cautious long-run estimate rather than recent fast growth. Home values do not rise every year, and the result is sensitive to this input. Try a low and a high rate to see the range of outcomes rather than relying on one optimistic figure.

Does it assume I invest the difference?+

No. Some comparisons assume a renter invests the money they would have spent on a down payment and earns a return. This calculator keeps things simple and does not, so a renter who invests diligently could do better than the plain rent figure shown.

What costs of owning are included?+

The calculator includes the mortgage payment, property tax, home insurance, maintenance, and any HOA fees, plus one-off closing costs when buying and selling costs when you leave. It offsets these with the equity and appreciation you recover at sale. Rent only includes the rising rent payments.

Is this financial advice?+

No. It is an educational comparison based on the assumptions you enter and a simplified model. It does not capture taxes, investment returns, or your full circumstances. Use it to frame the decision, and consult a qualified professional before buying or renting.

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