Rent vs Buy Calculator
The true 7-year cost of renting against buying, side by side.
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How this calculator works
The rent-vs-buy debate is usually argued with slogans ("rent is throwing money away"), but the math is subtler. Buying builds equity and benefits from appreciation, yet it also piles on closing costs, maintenance, taxes, insurance and interest, most of which renters never pay. This rent vs buy calculator does the full accounting over your actual time horizon: it totals everything you would spend buying (down payment, closing costs, PITI payments, maintenance) minus what you recover at sale (appreciation minus the remaining loan and selling costs), and compares it against total rent paid with annual increases. The year-by-year chart shows the crossover point where buying pulls ahead, if it does.
The single biggest variable is how long you stay. Transaction costs (2% to buy, 6% to sell) punish short stays brutally; under 3–5 years, renting usually wins even in appreciating markets. Run the calculator with honest numbers: local rent growth, realistic appreciation (the long-term US average is about 3–4%), and a maintenance budget of 1% of the price per year. And remember the non-financial side: buying buys stability and control, renting buys flexibility and freedom from surprise repair bills. The calculator settles the money question so you can weigh the lifestyle one clearly.