All Calculators
Should I Rent or Buy?
Compare the true financial cost of renting vs. buying a home over your expected time horizon.
RRenting
$2,000
$500$10,000
3%
0%10%
BBuying
$400,000
$100,000$2,000,000
20%
3%50%
6.5%
1%15%
1.2%
0.1%4%
$150
$50$1,000
3%
0%10%
Your Timeline
7 yrs
1 yrs30 yrs
Buying Looks Better
After 7 years, buying saves ~$62,417 compared to renting.
Monthly Rent
$2,000
Monthly Ownership Cost
$2,906
Monthly Ownership Breakdown
Principal & Interest$2,023
Property Tax$400
Homeowner's Insurance$150
Maintenance (est.)$333
Total$2,906
Total Rent Cost (7 yrs)
$183,899
Net Buy Cost (7 yrs)
$121,482
1
Break-Even at Year 1
Buying becomes cheaper than renting after this point.
Cumulative Cost Over Time
Buying net cost accounts for equity gained through home appreciation and loan paydown.
- Renting Cost
- Buying Net Cost
Assumptions: Buying net cost = cumulative housing costs minus equity gained (home appreciation + principal paydown). Maintenance estimated at 1% of home value annually. Results are estimates for planning purposes only.