Rent vs Buy Calculator
Estimate whether renting or buying is cheaper over a given period. The calculator compares rent payments with a simplified cost of purchasing a home.
Simplified estimate; real housing costs include many additional factors.
Examples
- $1,200 rent, $250,000 home, 4% for 5 years ⇒ $22,000
- $900 rent, $400,000 home, 6% for 5 years ⇒ -$66,000
FAQ
What does a negative result mean?
A negative value indicates buying costs more than renting.
Does this include maintenance or taxes?
No, it uses a simplified cost excluding taxes and upkeep.
Can I adjust the interest rate?
Yes, enter any annual rate to see different scenarios.
Additional Information
- Positive results mean renting costs more than mortgage interest.
- Mortgage interest is approximated with simple interest.