Rent vs. Buy Calculator

Compare the true financial cost of renting vs. buying over your expected time horizon — including equity, appreciation, and opportunity cost.

Your Scenario

Adjust inputs to match your local market and plans.

Renting

$

Buying

$
$
%
%/yr
Typically 1–2% of home value
%/yr

💡 The Price-to-Rent Ratio

Divide home price by annual rent to get the price-to-rent ratio. Under 15 generally favors buying; above 20 often favors renting. This calculator goes deeper — accounting for appreciation, equity, and your time horizon.

Cost Comparison

Total Rent Cost
Over your selected time horizon
Monthly Rent
Monthly Buy Cost
Equity Built
Home Value (est.)

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Beyond the numbers

This calculator compares financial outcomes — but the rent vs. buy decision also involves flexibility, lifestyle, and personal goals. Renting offers mobility. Buying builds equity and stability. Neither is universally better.

Key financial factors this calculator models: rent inflation (~3%/yr), home appreciation (~4%/yr), opportunity cost on your down payment (7% invested return), and equity built through amortization and appreciation.

Factors it doesn't model: the psychological value of homeownership, renovation costs, local market volatility, or the tax benefits of the mortgage interest deduction. Read our full buyer's guide →

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Compare Today's Top Lender Rates

Rates update daily. See what lenders are offering for your loan type and location — no obligation required.

LenderA
Best for First-Time Buyers
6.49% Check Rate
LenderB
Lowest Closing Costs
6.62% Check Rate
LenderC
Best for Refinancing
6.71% Check Rate

Rates shown are representative estimates. Actual offers depend on credit score, loan amount, and location. View full rate table →