Is renting throwing money away?

No — rent buys housing, flexibility, and freedom from maintenance and transaction costs. Buying converts payments into equity but adds taxes, upkeep, and big entry/exit costs. Which wins depends on prices, rates, rents, and how long you stay.

Why does how long I stay matter so much?

Buying front-loads huge one-time costs (closing, and eventually selling costs). The longer you stay, the more years those costs get spread across — that's why short stays usually favor renting.

What's the biggest wildcard in this comparison?

Home price appreciation. Small changes in the assumed rate move the answer a lot — test conservative and optimistic scenarios rather than trusting one number.

Does this include every cost of owning?

It models payment, taxes, insurance, maintenance, closing and selling costs, and equity — but not renovations, HOA differences, or tax-deduction effects, which vary by person.

Home

Rent vs Buy Calculator

Add up every dollar you'd spend on rent versus every dollar you'd spend to own — after mortgage interest, taxes, insurance, maintenance, and the equity you build. See the year buying actually pulls ahead.

Renting

Current monthly rent

Annual rent increase

Buying

Home price

Down payment

Interest rate

Loan term (years)

Property tax / year

Insurance / year

Maintenance % of value / year

Home appreciation / year

Buyer closing costs

Selling costs

Years staying

Total cost of renting

$330,160

Over 10 years

Net cost of buying

$272,968

Payments − equity built

Crossover year

Year 6

Buying pulls ahead of renting

Cumulative cost over time

Methodology & how to use this

What each side includes

Renting = sum of monthly rent over the horizon, growing at your rent-increase rate. Buying = down payment + buyer closing costs (default 3%) at year 0 + mortgage P&I (only during the loan term) + property tax + insurance + maintenance (as a % of home value) each year, minus the equity you've built (home value at the end minus remaining mortgage balance) net of selling costs (default 6%).

Escalation assumptions

Property tax grows with home appreciation each year (matching the way most assessors reappraise over time). Insurance grows at 3%/year. Maintenance is recomputed against the current home value. Both closing costs are one-time — buyer costs are added at year 0, selling costs are deducted only from the terminal equity credit.

The assumptions to challenge

Appreciation and rent-increase rates dominate long-horizon results — test both directions. We don't model the opportunity cost of the down payment invested elsewhere or the tax deductibility of mortgage interest. Treat this as a shape-of-the-answer tool, not a decision-locker.

Frequently asked questions

Keep running the numbers

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