Home Rent vs. Buy Calculator
Are you better off buying your home, or should you continue to rent?
How the home rent vs. buy calculator works
It tallies the net cost of buying over your time horizon — down payment, mortgage payments and ownership costs, minus the equity and appreciation you recover at sale — and compares it against the total cost of renting over the same period.
Worked example: with home price of $350,000, down payment of 20.00% and mortgage rate of 6.50%, the home rent vs buy calculator shows cheaper over 7 years of Buying.
- Net cost of buying
- $128,449
- Total cost of renting
- $174,704
- Home value at end
- $430,456
- Equity recovered
- $151,463
The formula
Buy net = down + payments + ownership costs − (home value at sale − loan balance − selling costs). Rent total = monthly rent compounded for inflation over the period.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the home rent vs. buy calculator
Is it better to rent or buy?
It depends on how long you stay, local prices and rents, and appreciation. Buying usually wins over longer horizons because you build equity; renting can win for short stays or pricey markets.
What costs of owning do people forget?
Property tax, insurance, maintenance, and the 6% or so it costs to sell. The calculator includes ownership costs and selling costs so the comparison is fair.
Why does my time horizon matter so much?
Buying has large upfront and selling costs to recoup. The longer you stay, the more time appreciation and equity have to outweigh them — short stays often favour renting.
Is the Home Rent vs. Buy Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.