Rent vs Buy Calculator
Should you rent or buy a home? Compare the true costs of renting versus buying over time, including tax benefits, appreciation, and opportunity costs.
Buying Costs
Renting Costs
After 10 Years
Our Recommendation
Rent
Save $243,790 over 10 years
Buying Net Cost
$217,617
After selling & equity
Renting Net Cost
$-26,173
After investments
Home Equity (Year 10)
$234,029
Investment Value (if rent)
$301,307
Net Cost Over Time
Lower is better. Net cost = total spending minus equity/investments
Year-by-Year Comparison
| Year | Buy Cost | Rent Cost | Home Equity | Investments |
|---|---|---|---|---|
| 1 | $126,471 | $24,000 | $70,857 | $108,911 |
| 2 | $161,249 | $48,720 | $86,291 | $126,593 |
| 3 | $196,341 | $74,182 | $102,330 | $145,085 |
| 4 | $231,759 | $100,407 | $119,001 | $164,433 |
| 5 | $267,510 | $127,419 | $136,332 | $184,683 |
| 6 | $303,606 | $155,242 | $154,354 | $205,884 |
| 7 | $340,057 | $183,899 | $173,101 | $228,089 |
| 8 | $376,873 | $213,416 | $192,604 | $251,354 |
| 9 | $414,066 | $243,819 | $212,901 | $275,739 |
| 10 | $451,646 | $275,133 | $234,029 | $301,307 |
Rent vs Buy Considerations
- •The longer you stay, the more buying typically makes sense
- •Renting offers flexibility if your job or life situation may change
- •Buying builds equity, but also ties up capital that could be invested
- •Don't forget about transaction costs: ~3% to buy, ~6% to sell
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How to Use This Rent vs Buy Calculator
This free rent vs buy calculator helps you make informed financial decisions. Simply enter your values above and see your results instantly - no signup required.
Why Use Our Calculator?
- •Instant Results: See calculations update in real-time as you adjust values
- •Visual Charts: Understand your finances with interactive visualizations
- •Mobile Friendly: Works perfectly on any device
- •100% Free: No hidden fees or signup required