Rent vs Buy Calculator
Compare the monthly cost of renting versus buying a home to help decide which option may be more affordable.
Results
Example: Rent vs Buy Calculation
For a home priced at $300,000 with a 20% down payment, 4% mortgage rate over 30 years, and $300 monthly ownership costs, the estimated monthly mortgage payment would be $1 146. The total monthly cost of buying would be $1 446. In this scenario, renting at $1 500 per month is cheaper.
How to think about renting vs buying
Renting usually offers flexibility, while buying builds equity but comes with higher upfront and ongoing costs.
This calculator focuses on monthly affordability, not long-term investment outcomes.
Buying a home often involves long-term debt considerations. A mortgage payoff calculator can help estimate monthly payments and interest costs over time.
Frequently Asked Questions
Is it cheaper to rent or buy?▾
It depends on prices, interest rates, and how long you plan to stay. This calculator compares monthly costs only.
Does this include taxes and maintenance?▾
Ownership costs should include estimates for taxes, insurance, and maintenance.
Does this include home appreciation?▾
No. Appreciation can significantly change long-term outcomes.
Is rent vs buy purely financial?▾
No. Lifestyle flexibility and personal preferences also matter.