Home buying · Free calculator
Rent vs Buy Calculator
The true cost of renting vs buying — not just monthly payments. Enter your numbers to find your break-even year.
Buying
$400,000
$100k $2M
20% — $80,000
3% 50%
6.8%
2% 12%
Loan term
3.0%
0% 8%
1.1%
0% 3%
Renting
$2,000
$500 $8k
3.0%
0% 8%
7.0%
0% 15%
Break-even year
Year 8
After year 8, buying is cheaper than renting
Net cost comparison — total spent minus equity recovered
| Horizon | Buying net cost | Renting net cost | Difference |
|---|
Buying — 10 year breakdown
- Down payment
- —
- Buying closing costs (3%)
- —
- Mortgage payments
- —
- Property tax
- —
- Insurance + maintenance (1.5%/yr)
- —
- Total paid out
- —
- Home value
- —
- − Remaining mortgage
- —
- − Selling costs (6%)
- —
- Net sale proceeds
- —
- Net cost of buying
- —
Renting — 10 year breakdown
- Total rent paid
- —
- Renter's insurance (~$200/yr)
- —
- Total paid out
- —
- Down payment invested
- —
- Portfolio value
- —
- Investment gain
- —
- Net cost of renting
- —
Net cost = total rent − investment gains on the down payment you kept.
Show detail breakdown for
Assumptions
- → Buying closing costs: 3% of home price (origination, title, escrow)
- → Selling closing costs: 6% of sale price (agent commission, transfer taxes)
- → Annual maintenance + insurance: 1.5% of home price per year
- → Property tax: applied to original purchase price each year (simplified)
- → Renter's insurance: $200/year
- → Mortgage interest deduction, PMI, and HOA fees are not modeled