Compare the true long-term cost of renting vs buying, including equity, appreciation, and closing and selling costs.
This calculator projects both scenarios year by year: cumulative rent paid (with annual increases) versus cumulative buying cost — mortgage payments, taxes, insurance and maintenance — offset by the equity and appreciation you'd recover if you sold at the end of the comparison period, after typical closing and selling costs.
Enter values to see your results.
Sum of monthly rent × 12, growing by the annual increase rate each year
Down Payment + Closing Costs + Σ(Monthly PITI + Maintenance) − Net Sale Proceeds
Future Value = Home Price × (1 + Appreciation%)ⁿ
Future Value − Remaining Loan Balance − Selling Costs (6%)
| Cost Factor | Typical Range | Notes |
|---|---|---|
| Closing Costs | 2%–5% of price | Paid at purchase |
| Selling Costs | 6%–8% of sale price | Agent commission + fees |
| Maintenance | 1%–2% of value/yr | Repairs, upkeep |
| Appreciation | 3%–4% per year | Long-run historical average |
The longer you plan to stay, the more likely buying wins out, since fixed closing costs get spread across more years.
This is a simplified comparison and doesn't model investment returns on money saved by renting, or renter's insurance costs.
The rent-vs-buy decision comes down to a handful of moving pieces.
Decide whether now is the right time to buy.
Compare rent vs buy economics in a new city.
Evaluate whether a short stay favors renting.
Advisors framing a client's housing tradeoffs.
Compare renting out vs selling an existing property.
Teach the real tradeoffs behind renting vs owning.
$400,000 home, 20% down, 6.75% rate vs $2,000/mo rent → buying is typically the lower-cost option over 10 years due to accumulated equity and appreciation.
Same numbers but only a 3-year stay → renting is often cheaper once closing and selling costs are factored in.
Same scenario with 5% annual appreciation instead of 3.5% → the breakeven year moves earlier, favoring buying sooner.
Explore free calculators for affordability, home value, property taxes and moving costs.