Rent vs. Buy Calculator
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What "Net Cost" Means Here
Buying isn't just your monthly payment — it's your down payment, principal and interest, property tax, insurance, and maintenance over the period, minus the equity you'd walk away with (home value minus remaining loan balance and selling costs) if you sold at the end. Renting's cost is simply your total rent paid, including annual increases.
Why the Comparison Period Matters So Much
Buying carries large upfront costs (down payment, closing costs) that take time to "earn back" through equity and appreciation. Renting frequently wins over short horizons of 1-3 years, while buying tends to look better the longer you stay — try changing the comparison years above to see the crossover point for your numbers.
This Doesn't Include Investment Returns on Your Down Payment
If you rent instead of buying, your would-be down payment could be invested elsewhere. This calculator doesn't model that opportunity cost — for a full investment growth projection, see the investment calculator.
Frequently Asked Questions
Why does renting often win over short periods?
Buying involves large upfront costs like a down payment and closing costs that take years of equity and appreciation to offset, so short stays favor renting.
Does this include investment returns on money not spent on a down payment?
No, this calculator focuses purely on housing costs and does not model investing the difference — treat that as a separate consideration.