Rent vs. Buy Calculator
Compare renting against buying on a monthly basis. Enter the home price and financing plus your rent to see the monthly cost of owning versus renting and the difference.
Cumulative cost: buy vs rent
Rent vs. buy over time
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Get quotesA monthly cost comparison
This compares the all-in monthly cost of owning — mortgage, taxes, insurance, HOA, and a maintenance reserve — against your rent. It deliberately keeps things simple: it does not count home-equity build-up, appreciation, tax deductions, or the opportunity cost of your down payment. Buying often looks more expensive monthly but builds wealth over time, so use this as one input, not the whole decision.
How it’s calculated
Monthly cost to own = mortgage + tax + insurance + HOA + maintenance reserve, compared to rent. It excludes equity build-up and appreciation.
Results update as you type and are estimates, not professional advice — verify important decisions with a qualified professional.
Worked example
A $400k home (20% down, 6.5%) costs about $2,781/month to own versus $2,200 to rent — a $581 monthly gap before equity.
Common mistakes
- Reading the monthly gap as the full answer — it ignores equity and appreciation.
- Forgetting maintenance in the cost of owning.
Where it is used
- Comparing the monthly cost of renting and buying.
- Framing a buy-versus-rent decision.
Frequently asked questions
Does buying build equity?
Yes — part of each mortgage payment pays down principal, and the home may appreciate. This monthly view doesn't credit that, so owning's true cost is usually lower than it appears here.
What maintenance rate should I use?
About 1% of the home's value per year is a common rule of thumb, higher for older homes.
When does renting win?
Often when you'll move within a few years, since buying costs (closing, selling) are spread over a short time.
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