Rent vs. Buy Calculator
Last updated: October 15, 2026
Compare the estimated long-term cost of renting with buying a home.
Lower estimated cost
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- Estimated net buying cost: —
- Estimated renting cost: —
On this page
Quick summary: Compare the estimated long-term cost of renting with buying a home.
Read the method, example and limitations
Updated reference sections in this guide are in English.
Guide language: English. Updated October 15, 2026.
What this calculator estimates
The Rent vs. Buy Calculator compares selected financial costs of renting a home with purchasing one under assumptions about price, financing, rent, appreciation, and time horizon.
Inputs and units
Enter Home price ($), Down payment (%), Mortgage rate (%), Monthly rent ($), Years in home, Home appreciation (%), Annual rent increase (%). Use the units shown. Required fields cannot be blank. Use zero only where that field and the model allow it. Select Calculate after changing the values.
Method and assumptions
Use a fixed 30-year mortgage. Compare down payment, scheduled mortgage payments, annual ownership costs of 2.5% of initial price and closing costs of 3%, minus equity at the horizon. Mortgage payments stop after 360 months. Rent rises once per year; a partial year is charged proportionately.
Worked example
A horizon of 35 years includes 30 years of scheduled mortgage payments, not 35 years of payments or a negative mortgage balance. At 0% rent growth, half a year at 1,000 monthly costs 6,000 in rent.
Limitations
The fixed 2.5% and 3% costs are model assumptions. Opportunity cost, selling costs, detailed taxes, investment of cash-flow differences and changing maintenance are excluded. This is a simplified nominal cash-flow comparison over 0 to 100 years.