Housing Scenarios

Renting Option

Monthly Rent ($)

Annual Rent Growth (%)

Buying Option

Home Price ($)

Down Payment ($)

Interest Rate (% APR)

Loan Term (years)

General Scenario

Years Staying in Home

Advanced Options

Buy Closing Costs (%)

Property Tax Rate (%)

Annual Home Insurance ($)

Annual Maintenance Rate (%)

Home Appreciation Rate (%)

Sell Closing Costs (%)

Renter's Insurance ($/month)

Security Deposit ($)

Investment Return Rate (%)

Cost Comparison

Recommendation	—
Total Cost of Renting	—
Total Cost of Buying	—
Estimated Net Home Equity	—
Monthly Mortgage P&I	—

Average Monthly Cost Comparison

Enter values and press Calculate to see the cost comparison line chart.

How to Compare Renting vs. Buying

Choosing between renting and buying a home is a complex financial decision. While buying allows you to build equity, it requires substantial transaction costs (closing fees), ongoing maintenance, property taxes, and homeowners insurance.

How the Rent vs. Buy Model Works

This calculator evaluates the net financial outcome of both paths over your intended length of stay:

**Renting Cost:** Sums your monthly rent payments over the staying period, compounding by the annual rent growth rate.
**Buying Cost:** Sums your down payment, monthly mortgage principal & interest payments, and estimated maintenance/tax/insurance costs (modeled at a standard 2.0% of the home value annually).
**Equity Credit:** Buying costs are offset by the home equity built. The home value appreciates at 3% annually. At the end of the term, we subtract the remaining mortgage balance and a 6% sales commission from the appreciated value to determine your net home equity.

Disclaimer. This calculator is for informational purposes only. Local market appreciation rates, rent inflation, stock market returns (opportunity cost of your down payment), and specific property tax rates vary.