Rent vs Buy Calculator
Compare renting and buying over time. The calculator estimates rent paid, ownership costs, equity, and break-even timing.
Rent assumptions
Accepted inputs: $2,200, 2200.00, .5, 12., 2200,50.
Applied once per year.
Buy assumptions
Over 7 years, with rent increasing by 300.00%annually.
Ownership outflow minus estimated net sale proceeds.
First year buying is estimated to cost no more than renting in this model.
Year-by-year comparison
Shows rent paid, ownership cash outflow, and estimated equity for each year.
| Year | Rent annual | Rent cumulative | Home value | Mortgage balance | Ownership outflow annual | Ownership outflow cumulative | Interest paid | Principal paid | Equity end |
|---|---|---|---|---|---|---|---|---|---|
| 1 | $26,400.00 | $26,400.00 | $550,000.00 | $431,565.67 | $44,623.82 | $44,623.82 | $23,989.49 | $8,434.33 | $118,434.33 |
| 2 | $27,192.00 | $53,592.00 | $566,500.00 | $422,655.58 | $44,953.82 | $89,577.64 | $23,513.73 | $8,910.09 | $143,844.42 |
| 3 | $28,007.76 | $81,599.76 | $583,495.00 | $413,242.89 | $45,293.72 | $134,871.36 | $23,011.13 | $9,412.69 | $170,252.11 |
| 4 | $28,847.99 | $110,447.75 | $600,999.85 | $403,299.25 | $45,643.82 | $180,515.18 | $22,480.18 | $9,943.64 | $197,700.60 |
| 5 | $29,713.43 | $140,161.19 | $619,029.85 | $392,794.71 | $46,004.42 | $226,519.59 | $21,919.28 | $10,504.54 | $226,235.13 |
| 6 | $30,604.84 | $170,766.02 | $637,600.74 | $381,697.63 | $46,375.83 | $272,895.43 | $21,326.74 | $11,097.08 | $255,903.11 |
| 7 | $31,522.98 | $202,289.00 | $656,728.76 | $369,974.59 | $46,758.39 | $319,653.82 | $20,700.78 | $11,723.04 | $286,754.17 |
Annual ownership outflow does not include the final sale event. Upfront costs are included in the ownership totals.
How this calculator worksRent vs buy comparison context
Rent-vs-buy math is useful when you want a planning comparison, not a universal answer. Monthly cash flow, upfront costs, time horizon, and risk all matter.
What this calculation clarifies
- 1Monthly payment is not the whole decision
Buying can include taxes, insurance, maintenance, HOA fees, closing costs, and opportunity cost. Renting can include rent increases, deposits, and moving flexibility.
- 2Time horizon changes the answer
Buying costs are front-loaded. Renting can be more flexible in the short term, while ownership may look different over a longer horizon.
- 3Non-financial factors matter
School location, job uncertainty, maintenance responsibility, and lifestyle flexibility can outweigh a narrow monthly comparison.
Worked examples
If you may move within a year or two, transaction costs can make buying harder to justify even when monthly ownership looks close.
A mortgage-like payment can still be more expensive than rent if repairs, taxes, and insurance are not included in the estimate.
If rent is rising quickly, compare projected rent against ownership costs over the same time horizon rather than only this month.
Useful context
- Use this as a decision framework, not financial advice.
- The rent converter and affordability tools can help normalize the rent side before comparison.
Related calculators
When rent vs buy context helps
- Comparing monthly rent with estimated ownership costs.
- Testing how long you need to stay for buying to make sense.
- Spotting missing costs before relying on a simple monthly payment comparison.
Check before relying on it
- Mortgage approval, taxes, investment return, and legal advice need separate professional review.