Housing calculator
Buy vs Rent Calculator
Compare a simplified home-buying scenario with renting. The model estimates monthly owner cost and a rough horizon difference using rent growth, maintenance, taxes, insurance, loan payoff, and home appreciation assumptions.
Updated: June 10, 2026
Compare buy and rent assumptions
Scenario comparison
Compare total rent, simplified owner cost after equity, and the resulting difference over the selected horizon.
Monthly owner cost breakdown
This insight updates to show whether mortgage payment or carrying costs dominate the owner-side estimate.
How to read the result
A positive horizon difference means the simplified owning cost is higher than the simplified renting cost over the selected horizon after estimated equity and appreciation. A negative number means the simplified owning scenario is lower under these assumptions.
Formula overview
The calculator estimates fixed mortgage payment, adds monthly tax, insurance, and maintenance, sums expected rent with annual rent increases, estimates remaining loan balance, and offsets owner cost by estimated home equity.
Worked example
Suppose rent is $1,800, a home costs $350,000, the down payment is $70,000, and the mortgage rate is 6.5%. The calculator compares the out-of-pocket owner costs over the selected horizon with growing rent, then subtracts estimated owner equity to produce the rough difference.
Costs to verify separately
- Buying and selling closing costs, agent commissions, inspections, and title charges.
- HOA dues, PMI, major repairs, utilities, property-tax reassessments, and insurance changes.
- Opportunity cost of the down payment and the risk that home values or rent growth differ from assumptions.
Next steps
Run a few scenarios: shorter and longer horizons, lower appreciation, higher maintenance, and a same-month rent comparison. For payment details, use the mortgage payment calculator; for monthly cash flow, use the monthly budget calculator; and for a plain-English walkthrough, read Buy vs Rent Explained.
It can also help to rerun the comparison using the same total monthly housing budget on both sides. That makes the tradeoff clearer when renting leaves extra cash for savings or when owning builds equity but reduces monthly flexibility.
Result quality checklist
- Add a margin for closing costs, selling costs, HOA dues, PMI, and repairs that are not modeled here.
- Stress-test lower appreciation and higher maintenance assumptions before treating buying as cheaper.
- Compare the monthly owner cost with your full budget, not only with current rent.
Related calculators
Use the mortgage payment calculator for a deeper payment estimate, the rent affordability calculator for rental budget checks, and the monthly budget calculator for full cash-flow planning.
Method and verification trail
- Method used: The model compares projected rent payments with simplified owner outflow, then subtracts estimated equity from the ownership side to create a rough horizon difference.
- Primary source type to verify: Lease terms, mortgage loan estimates, property-tax records, insurance quotes, HOA disclosures, repair assumptions, and local closing-cost estimates.
- What to confirm in real documents: Whether taxes, insurance, HOA dues, PMI, closing costs, selling costs, and maintenance assumptions are realistic for the actual property and time horizon.
- Scope limit: This calculator does not fully model transaction costs, tax effects, utility differences, opportunity cost, market volatility, or all ownership risks.
For site-wide methodology, review How We Calculate. For sourcing and corrections standards, review Editorial Policy.
FAQ
Can this decide whether I should buy?
No. It is a rough comparison tool, not personalized housing advice or lender approval guidance.
Why are closing and selling costs excluded?
They vary widely by property, location, and timing. Add your own margin of safety before using the result for a real decision.
Why can a longer horizon change the result?
More years give rent growth, mortgage payoff, maintenance, and appreciation assumptions more time to compound, which can materially change the comparison.
What should I verify outside this calculator?
Check loan estimates, taxes, insurance, HOA dues, closing costs, selling costs, repair risk, and whether the monthly owner path still fits your full budget.
How to read this estimate
The result is an educational estimate based only on the inputs shown on this page. It is useful for comparing assumptions, spotting cost drivers, and understanding the formula, but it is not a recommendation or a guarantee.
Before using a result for a real decision, compare it with official documents, local rules, fees, taxes, insurance, and any professional guidance that applies. See How We Calculate and the Disclaimer for more context.
Scenario tips before comparing housing paths
Buy-versus-rent comparisons are sensitive to assumptions, so use the result as a planning conversation rather than a verdict. The horizon matters because rent growth, mortgage payoff, maintenance, and home appreciation compound over time. A short horizon can be dominated by transaction costs and uncertainty, while a long horizon gives appreciation and principal reduction more time to matter.
Because this simplified model excludes several real-world costs, add a margin of safety before treating ownership as cheaper. Closing costs, selling costs, HOA dues, PMI, major repairs, utility differences, property-tax reassessments, and the opportunity cost of the down payment can all change the result. Try one optimistic case, one conservative case, and one stress case with lower appreciation and higher maintenance.