Rent vs Buy Calculator

Compare the long-term cost of renting versus buying a home.

Home price

Down payment

Rate %

Term (yrs)

Monthly rent

Rent growth %/yr

Years you'll stay:

Total cost of buying

Total cost of renting

Equity built

Includes ~1.7% tax, 0.5% insurance & 1% maintenance / yr.

How to Use

1. Enter the home price, down payment, rate, and term.
2. Enter your current monthly rent and an annual rent increase.
3. Set how long you plan to stay.
4. We compare total cost of buying vs renting over that period.

Calculation Method

Buying cost = down payment + mortgage payments + estimated taxes/insurance/maintenance over the stay, minus equity built. Renting cost = sum of rent with annual growth applied. The break-even is the year buying becomes cheaper than renting.

Data sources: Standard amortization plus configurable rent-growth and ownership-cost assumptions.

Examples

$400,000 buy vs $2,200 rent, 7-year stay

Buying often breaks even around year 4–6 depending on rent growth and rates.

Frequently Asked Questions

Not always. Short stays, high prices relative to rent, or high ownership costs can make renting cheaper.

Mortgage, property tax, insurance, and a maintenance estimate. Closing costs can be added to the down payment field.

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Mortgage Information Disclaimer

The mortgage calculations on this site are estimates based on the information you provide. Actual mortgage terms, interest rates, and payments will vary based on your credit score and history, debt-to-income ratio, property type and location, loan program, lender-specific requirements, and market conditions.

SmartMortgageCalcs does not provide mortgage, financial, or legal advice. We are not a mortgage lender or broker. We strongly recommend consulting with multiple licensed mortgage lenders, working with a qualified real estate agent, reviewing all documents carefully before signing, and seeking advice from a financial advisor. Our estimates do not constitute a loan offer or commitment — final loan terms are determined by the lender. Interest rates and fees shown are illustrative only.

Last updated: May 19, 2026