Rent vs Buy Calculator
Compare the financial implications of renting versus buying a home
Your Information
Comparison
Total Rent Paid (over 1500)
$209,172
Total Buy Cost
$371,375
Home Equity Built
$232,998
Net Cost Difference
$70,795
Recommendation
Buying appears to be the better option
Rent vs Buy Tips
Consider your personal situation, job stability, and long-term plans when deciding to rent or buy
Quick Facts
Building equity through homeownership can provide long-term wealth, but renting offers flexibility
Note
This calculator assumes consistent market conditions and doesn't account for tax benefits or selling costs
How Rent vs Buy Works
This calculator compares the total financial cost of renting versus buying over a selected time period.
- Buying costs include mortgage, property tax, insurance, and maintenance
- Renting accounts for annual rent increases over time
- Home equity is calculated based on appreciation and mortgage principal paydown
- Net cost difference shows which option is financially advantageous
Last updated: February 2026
Rent vs Buy FAQ
What costs are included in buying?
Mortgage payments, property taxes, homeowners insurance, and maintenance costs. Not included: closing costs and future selling costs.
How does home equity factor in?
Home equity is built through mortgage principal paydown and home appreciation. This increases your net worth over time.
What if rent prices decrease?
This calculator assumes rent increases annually. Adjust the rent increase percentage to 0 for stable rents.
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