Rent vs Buy Calculator
Compare five-year renting costs with estimated buying costs.
Monthly buy cost
$2,908.75
Five-year rent cost
$132,000.00
Five-year buy cost
$207,376.39
Selling cost
$29,213.71
Buying advantage
-$75,376.39
Model scope
Basic five-year estimate; excludes rent growth, tax effects, PMI, and opportunity cost.
Rent vs buy timeline
Shows the model result at each year in the five-year horizon.
| Year | Rent cost | Buy cost | Buying advantage | Leader |
|---|---|---|---|---|
| 1 | $26,400.00 | $136,505.43 | $-110,105.43 | Renting ahead |
| 2 | $52,800.00 | $155,204.01 | $-102,404.01 | Renting ahead |
| 3 | $79,200.00 | $173,268.26 | $-94,068.26 | Renting ahead |
| 4 | $105,600.00 | $190,669.22 | $-85,069.22 | Renting ahead |
| 5 | $132,000.00 | $207,376.39 | $-75,376.39 | Renting ahead |
Five-year comparison
Lower cost is better. Buying advantage is positive when buying wins.
Formula
Buying advantage = five-year rent cost - estimated five-year buy cost.
Assumptions
- Uses a fixed five-year horizon.
- Does not model rent growth, PMI, tax deductions, investment return on down payment, or regional tax rules.
- Treat the result as a directional estimate, not a full housing decision model.
The rent vs buy calculator compares rent with an estimated home purchase, including mortgage payment, taxes, insurance, maintenance, closing costs, equity, and appreciation.
How to Use
The rent vs buy calculator compares rent with an estimated home purchase, including mortgage payment, taxes, insurance, maintenance, closing costs, equity, and appreciation. Fill in Monthly rent, Home price, Down payment, Mortgage rate, Loan years, Property tax rate, Monthly insurance, Monthly maintenance, Closing costs, Annual appreciation, and Selling cost, then review the calculated Monthly buy cost, Five-year rent cost, Five-year buy cost, Buying advantage, Model scope, and Selling cost.
- Open the calculator : Start with Rent vs Buy Calculator.
- Enter values : Fill in the required inputs and any optional settings.
- Review the result : Read the output and use the about page for more detail if needed.
Common Questions
What does the Rent vs Buy Calculator estimate?
Compare five-year renting costs with estimated buying costs.
What can change the estimate?
This is an estimate, so taxes, fees, payment timing, compounding, and changing returns can move the result.