Rent vs Buy Calculator
Compare the monthly cost of renting against owning.
Annual tax as a percent of home price.
Results update as you type.
This calculator is for illustrative purposes only. Actual rates, fees and terms vary by lender. Consult a qualified financial adviser before making borrowing decisions.
How it works
Deciding whether to rent or buy is one of the largest financial choices most people face, and the honest answer rarely comes from comparing rent against a mortgage payment alone. A rent vs buy calculator builds a fairer picture by adding the hidden monthly costs of ownership that renters never see: property taxes and ongoing maintenance on top of the loan itself. It then places that total beside your current rent so the real difference is visible. Owning carries costs that a lease bundles away or shifts to a landlord. Property taxes recur every year, upkeep and repairs typically run around one percent of the home's value annually, and financing spreads the purchase across decades of interest. Renting trades those obligations for a single predictable payment, though it builds no equity in return. The comparison works because it converts both paths into a like-for-like monthly figure, letting you see immediately whether buying costs more or less each month than renting today. Numbers alone will not settle the decision, since equity growth, tax treatment, and how long you plan to stay all matter, but seeing the monthly gap clearly is the essential first step buyers and renters alike should take before committing.
Buy monthly = mortgage P&I + property tax + ~1%/yr maintenance
The mortgage principal and interest come from the standard amortization formula on the financed amount, spreading repayment evenly across the term. Property tax is estimated as a yearly percentage of the home price divided into monthly instalments, and a maintenance allowance of roughly one percent of value per year covers upkeep. Summing these gives the ongoing monthly cost of ownership, which the tool then subtracts from your rent to reveal the gap.
Source:Standard amortization formula
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter home price, mortgage interest rate, loan term and monthly rent.
- 2
Adjust the options
Adjust down payment and property tax rate if they apply — sensible defaults are already set.
- 3
Read your result
Monthly cost to buy updates instantly as you type — no button to press.
Frequently asked questions
Does buying always beat renting in the long run?
Not always. Buying tends to win when you stay put long enough for appreciation and equity to outweigh transaction costs, often five years or more. If you move sooner, agent fees, closing costs, and early-year interest can leave renting ahead. Local price trends, interest rates, and how the gap between rent and ownership costs is invested all tilt the outcome one way or the other.
What costs of owning does the calculator include?
It sums three recurring pieces: mortgage principal and interest on the financed amount, estimated annual property tax spread monthly, and a maintenance allowance of about one percent of the home's value per year. It does not include homeowners insurance, HOA dues, private mortgage insurance, or closing costs, so treat the result as a strong baseline and add those figures for your specific property to sharpen the comparison.
Why include maintenance when renters do not pay it?
That is precisely the point. Renters offload repairs and upkeep to their landlord, while owners shoulder them directly. Ignoring maintenance would understate the true cost of owning and make buying look artificially cheap. A common rule of thumb sets annual upkeep near one percent of the home's value, covering everything from a failed water heater to routine servicing, which is why the calculator bakes it into the monthly figure.
Should I count the equity I build by buying?
Yes, when making the final call. A portion of every mortgage payment reduces your loan balance, effectively saving money you recover when you sell, and the property may appreciate as well. This calculator compares raw monthly cash cost rather than net wealth, so a buy figure that looks higher can still be the better long-term deal once equity and price growth are considered.
How does my down payment change the comparison?
A larger down payment shrinks the financed amount, which lowers the monthly principal and interest and can make buying more competitive with renting on a cash basis. It also ties up more capital upfront that could otherwise be invested elsewhere. The calculator subtracts your down payment from the price to size the loan, so experimenting with different amounts shows how much the monthly cost of ownership shifts.