Rent vs Buy Calculator
Make the biggest financial decision of your life with confidence. This calculator compares the total net cost of buying vs renting over your planned stay, accounting for mortgage, equity, appreciation, property taxes, and the opportunity cost of your down payment.
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Frequently Asked Questions
When does buying a home make more financial sense than renting?
Buying typically wins when: you plan to stay 5+ years (enough to recoup closing costs through equity), your rent-to-price ratio is low (price ≤ 15–20× annual rent), and you have a stable income and adequate down payment. Short stays almost always favor renting.
What hidden costs does home ownership include?
Beyond the mortgage: property tax (1–2% of value/year), homeowner's insurance (0.5–1%), maintenance (1–2%/year), HOA fees (if applicable), and transaction costs to sell (5–6%). These add $10,000–$20,000+/year on a $400k home.
What is the price-to-rent ratio?
Price-to-rent ratio = Home Price / Annual Rent. Below 15: buying is generally favorable. 15–20: neutral — both can work. Above 20: renting is typically cheaper. In expensive cities (NYC, SF), ratios of 30–40+ are common, making renting financially advantageous.