Rent vs Buy Calculator
Renting isn't throwing money away and a mortgage isn't automatic wealth. Enter your numbers to see which wins over your actual stay — and the year buying breaks even.
FAQ
- How does the rent vs buy calculator decide a winner?
- It tracks the cumulative cost of renting versus the net cost of owning each year. Owning's net cost is mortgage interest + property tax + insurance + maintenance + the opportunity cost of your down payment, minus the equity you'd walk away with after selling costs. The break-even year is when owning's cumulative cost drops below renting's.
- What's the price-to-rent ratio?
- Purchase price divided by one year of rent for an equivalent home. Below about 15, buying tends to win; above about 21, renting and investing the difference often wins; 15–21 is a genuine toss-up decided by how long you stay.
- Why do short stays favor renting?
- Buying costs 2–5% upfront and selling costs 6–8%. You need years of ownership to amortize roughly 10% in transaction costs. Sell after two or three years and those costs can erase any equity you built.
- Is this financial advice?
- No — it's a planning model. It can't know your tax situation, future rates, or what the market will actually do. Use it to find your break-even year and stress-test assumptions, then confirm with a financial professional.