Rent vs Buy Calculator
Compare your estimated monthly cost of renting vs owning by factoring in mortgage payment, taxes, insurance, HOA, and maintenance. Use it as a quick reality check before making a move.
Inputs
Results
Renting is cheaper (monthly).
- Mortgage: $1,816
- Property tax: $583
- Insurance: $150
- HOA: $0
- Maintenance: $292
- Down payment: $70,000
Tip: This compares *monthly cash cost* only. For a full model (equity, appreciation, tax effects), add a “5-year horizon” later.
When to Use This Calculator
Use this calculator when you're deciding whether renting or buying makes more financial sense for your situation. It's especially helpful when comparing monthly cash costs in a specific market, evaluating whether you can afford homeownership beyond just the mortgage, or trying to understand the true cost of ownership including taxes, insurance, HOA, and maintenance.
How It Works
This calculator compares your total monthly cost of owning (principal, interest, taxes, insurance, HOA, and maintenance) against your monthly rent. It provides a cash-cost comparison — not a full wealth-building model. For a complete picture, also consider equity buildup, appreciation, tax benefits, and the opportunity cost of your down payment.
Key Terms
How to Use This Rent vs Buy Calculator (Mini Guide)
Use this as a fast monthly cash-cost comparison. It’s a great first pass, then you can validate with longer-horizon factors like equity, appreciation, and opportunity cost.
What this calculator compares
It compares your estimated monthly cash cost of buying (mortgage + taxes + insurance + HOA + maintenance) against your monthly rent.
Think of it as a “monthly reality check” — not a full wealth-building model.
Who this is for
First-time buyers deciding if ownership fits their monthly budget.
Renters comparing true ownership costs (especially taxes/insurance/HOA).
Anyone relocating who wants a quick, realistic monthly estimate.
How to enter inputs (fast + correctly)
Rent: use the rent you’d pay for a truly comparable home/location.
Interest rate: use a rate you can actually qualify for today (not a hopeful future rate).
Taxes + insurance: don’t guess if you can avoid it — these two swing outcomes the most.
Maintenance: 1%/year is a common baseline; older homes often need more.
Quick example (sanity check)
If buying shows cheaper than renting, re-check taxes/insurance/maintenance first — most “buy wins” results come from underestimating those.
If buying is higher, it doesn’t mean renting always wins — it may still be worth it if you’ll stay long enough and value stability/control.
Next steps after you run it
If you might move within ~3 years, be extra cautious — transaction costs can overwhelm benefits.
Get a real insurance quote and confirm local tax rate for a much more accurate comparison.
Try with Local Assumptions
Select a city to pre-fill the calculator with local market defaults.