Rent vs Buy Calculator
Compare renting to buying over a chosen horizon. Includes mortgage payments, opportunity cost of the down payment, and rent inflation.
Inputs
Verdict
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Total cost — Buy
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Total cost — Rent (net of investing down payment)
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Monthly mortgage
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Down payment investment gain
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About Rent vs Buy Calculator
What this ignores
Home appreciation (typically 3-4%/year), tax benefits, transaction costs (5-6% to sell), and intangibles like stability and flexibility. Real-world break-even is often around year 5-7.
5% rule of thumb
A quick check: if annual rent < 5% of home price, renting wins financially. At 5% of $400k that’s $20k/year ($1,667/month). Above that, lean toward buying if you’ll stay 5+ years.
Why upkeep at 1.5%?
Property tax (1-2%), insurance ($1-2k), maintenance (~1% of home value/year), HOA. Total holding cost is typically 1.5-2.5% of home value annually.