Quick answer
The calculator compares total rent paid with the net cost of buying (down payment, mortgage payments, tax and maintenance, minus the equity recovered on sale). In the example, renting costs $165,509.18 and buying nets $95,272.03, so buying costs $70,237.15 less over the horizon.
Enter rent, annual rent increase, home price, down payment, rate, term and ownership costs. The calculator returns both totals and which is cheaper. Use this rent vs buy calculator to check your own figures.
Related tools: Rent Calculator: Maximum rent for a share of monthly income. Prorated Rent Calculator: Rent for a partial month. Net Effective Rent Calculator: Average monthly rent after free-rent concessions.
How to use the Rent vs Buy Calculator
- Enter monthly rent ($) (above 0).
- Enter yearly rent increase (%) (between 0 and 50).
- Enter home price ($) (above 0).
- Enter down payment (%) (between 0 and 99).
- Enter mortgage rate (%) (between 0 and 100).
- Enter mortgage term (years) (a whole number, between 1 and 50).
- Enter property tax (% of price per year) (between 0 and 20).
- Enter maintenance (% of price per year) (between 0 and 20).
- Enter yearly home price change (%) (between -50 and 50).
- Enter years until you sell (a whole number, between 1 and 50).
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Monthly rent | A number, in $ | > 0 |
| Yearly rent increase | A number, in % | ≥ 0, ≤ 50 |
| Home price | A number, in $ | > 0 |
| Down payment | A number, in % | ≥ 0, ≤ 99 |
| Mortgage rate | A number, in % | ≥ 0, ≤ 100 |
| Mortgage term | A whole number, in years | ≥ 1, ≤ 50 |
| Property tax | A number, in % of price per year | ≥ 0, ≤ 20 |
| Maintenance | A number, in % of price per year | ≥ 0, ≤ 20 |
| Yearly home price change | A number, in % | ≥ -50, ≤ 50 |
| Years until you sell | A whole number | ≥ 1, ≤ 50 |
Formula and method
Formula
buy cost = down payment + mortgage payments + tax + maintenance − (sale price − remaining balance); rent cost = Σ rent
IEEE-754 double precision; shown to the decimals indicated.
Ignores selling costs, taxes, insurance, and what the down payment could have earned elsewhere.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Monthly rent = 1800; Yearly rent increase = 3; Home price = 350000; Down payment = 20; Mortgage rate = 6.5; Mortgage term = 30; Property tax = 1.2; Maintenance = 1; Yearly home price change = 3; Years until you sell = 7.
| Result | Value |
|---|---|
| Cheaper over the horizon | Buying costs less |
| Total rent paid | $165,509.18 |
| Net cost of buying | $95,272.03 |
| Difference | $70,237.15 |
Example 2
Inputs: Monthly rent = 2500; Yearly rent increase = 4; Home price = 500000; Down payment = 10; Mortgage rate = 7; Mortgage term = 30; Property tax = 1.0; Maintenance = 1.5; Yearly home price change = 2; Years until you sell = 5.
| Result | Value |
|---|---|
| Cheaper over the horizon | Renting costs less |
| Total rent paid | $162,489.68 |
| Net cost of buying | $163,683.43 |
| Difference | $1,193.75 |
The first line is the headline result (cheaper over the horizon). Below it the rent vs Buy Calculator lists total rent paid, net cost of buying and difference, which describe the same case from other angles. IEEE-754 double precision; shown to the decimals indicated.
What the totals mean
Buying's net cost subtracts what you get back when you sell: the sale price minus the remaining mortgage balance. Rent grows 3% a year here, which raises the rent total over time.
What it leaves out
The opportunity cost of the down payment (what it could earn invested) and transaction costs are excluded, which favours buying. Results depend on the holding period, appreciation and rates, so test several.
How the result changes with monthly rent
Holding every other input at the first worked example, this table changes only monthly rent. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Monthly rent | Cheaper over the horizon | Total rent paid | Net cost of buying |
|---|---|---|---|
| 900 | Renting costs less | $82,754.59 | $95,272.03 |
| 1800 | Buying costs less | $165,509.18 | $95,272.03 |
| 3600 | Buying costs less | $331,018.37 | $95,272.03 |
| 7200 | Buying costs less | $662,036.73 | $95,272.03 |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Years until you sell: entering "40" shows "The horizon cannot be longer than the mortgage term." beside that field and no result.
- Monthly rent: entering "0" shows "Monthly rent must be greater than 0." beside that field and no result.
Choosing between the Rent vs Buy Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Rent Calculator](/real-estate/rent-calculator/) | gross monthly income and share of income for rent | Maximum monthly rent |
| [Prorated Rent Calculator](/real-estate/prorated-rent/) | monthly rent, days in the month and days occupied | Prorated rent |
| [Net Effective Rent Calculator](/real-estate/net-effective-rent-calculator/) | monthly rent, lease term and free months | Net effective rent |
| [D&D Point Buy Calculator](/other/point-buy/) | sTR score, dEX score and cON score | Points spent |
| [Lease vs Buy Calculator](/automotive/lease-vs-buy-calculator/) | purchase price, down payment and loan rate | Cheaper over the lease term |
Background: rental property metrics
Rental property metrics answer different questions. The cap rate is net operating income divided by the purchase price and ignores financing; cash flow is income minus operating expenses minus debt service; cash-on-cash return divides annual cash flow by the cash you actually invested. Rules of thumb such as the 1% rule (monthly rent at least 1% of the price) are quick screens, not decisions.
Check the assumptions behind any result: vacancy, management fees, repairs and taxes. Published benchmark ranges for a good cap rate or return vary between sources.
Assumptions and limitations
- Excludes opportunity cost of the down payment
Estimates only. Taxes, fees and lender or authority rules vary by place and date, so confirm figures with the relevant authority or professional.
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for years until you sell and monthly rent to confirm this.
Frequently asked questions
When is renting better?
For short stays or when prices are high relative to rent.
Does the result include appreciation?
Only through the sale price assumption.
What about taxes?
Included as property tax.
What does the Rent vs Buy Calculator calculate?
Compare the total cost of renting with the net cost of buying over a time horizon. It returns Cheaper over the horizon, Total rent paid, Net cost of buying and Difference.
What formula does the Rent vs Buy Calculator use?
buy cost = down payment + mortgage payments + tax + maintenance − (sale price − remaining balance); rent cost = Σ rent. Ignores selling costs, taxes, insurance, and what the down payment could have earned elsewhere.
What do I need to enter in the rent vs Buy Calculator?
You enter Monthly rent ($), Yearly rent increase (%), Home price ($), Down payment (%), Mortgage rate (%), Mortgage term (years), Property tax (% of price per year), Maintenance (% of price per year), Yearly home price change (%) and Years until you sell.
How is the result rounded or limited?
IEEE-754 double precision; shown to the decimals indicated. Excludes opportunity cost of the down payment.
What is an example of a rent vs Buy result?
With monthly rent 1800, yearly rent increase 3, home price 350000, down payment 20 and mortgage rate 6.5, the cheaper over the horizon is Buying costs less.
Can I rely on this calculator for a decision?
Estimates only. Taxes, fees and lender or authority rules vary by place and date, so confirm figures with the relevant authority or professional. For this calculator in particular: Excludes opportunity cost of the down payment.
Related calculators
- Rent Calculator — Maximum rent for a share of monthly income.
- Prorated Rent Calculator — Rent for a partial month.
- Net Effective Rent Calculator — Average monthly rent after free-rent concessions.
- Lease vs Buy Calculator — Compare the cost of leasing with buying over the lease term.
- Rent Split Calculator — Split rent in proportion to each person's income.
Sources
- Common definition used on this page. No single authoritative standard defines it, so the exact formula is stated in the formula section above
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.