Rent vs. Buy Calculator | Should You Rent or Buy a Home? (2025)

🏠 Home Purchase (Buying)

Home Price ($)

Down Payment (%)

Interest Rate (%)

Loan Term (years)

Buying Closing Costs (%)

Property Tax Rate (%/year)

Property Tax Increase (%/year)

Home Insurance ($/year)

HOA Fee ($/year)

Maintenance Cost (%/year)

Home Appreciation (%/year)

Selling Closing Costs (%)

🔑 Renting

Monthly Rent ($)

Rent Increase (%/year)

Renter's Insurance ($/month)

Security Deposit ($)

Upfront Costs ($)

💰 Investment & Tax Info

Average Investment Return (%)

Marginal Federal Tax Rate (%)

Calculating...

Average Buying Cost
$0
monthly (5 years)

Average Renting Cost
$0
monthly (5 years)

📅 Year-by-Year Average Cost Comparison

Years	Avg Monthly Buying	Avg Monthly Renting	Annual Buying	Annual Renting

📘 Rent vs. Buy: Which is Right for You?

Deciding whether to rent or buy is one of the biggest financial choices you'll make. This calculator compares total costs over time, including mortgage payments, property taxes, maintenance, rent increases, and opportunity cost of your down payment. The key metric is the break-even point – the number of years after which buying becomes cheaper than renting.

✅ When Buying Wins

If you plan to stay in the home for 5+ years, rising rents and equity accumulation often make buying cheaper. Homeownership also offers stability, potential tax deductions (mortgage interest), and the freedom to renovate.

⏳ When Renting Wins

If you need flexibility, have a lower down payment, or plan to move within 2-3 years, renting avoids high transaction costs (closing costs, realtor fees) and major repair expenses.

📊 How to Use This Calculator

Enter your home price, down payment, mortgage rate, taxes, insurance, maintenance, and rental details. The calculator projects costs over 30 years, accounting for inflation, tax benefits (deductible mortgage interest), and investment returns on savings. The break-even point shows when cumulative buying costs fall below renting costs. Explore different scenarios – small changes in rates or rent increases can shift the decision significantly.

⚠️ Important Assumptions

This model assumes you invest the down payment and upfront buying costs at your average investment return if renting. Mortgage interest tax deduction is applied at your marginal tax rate. Selling costs are deducted from home equity. All figures are estimates. Consult a financial advisor for personalized guidance.

Disclaimer: Results are estimates for educational purposes. Actual costs vary by location, market conditions, and individual circumstances. Not financial advice.

🏡 Rent vs. Buy Calculator (2025)