Free tool
Rent vs Buy Calculator
Tell it how long you plan to stay, the rent, and the home price. It tells you which choice leaves you with more money, the year buying pulls ahead, and which assumption would flip the answer. Free, no account required.
7 years
This is the number that matters most. Buying has big one-off costs, so it needs time to pay them back.
Fine-tune the assumptions
Sensible defaults are filled in. Change them only if you know your own numbers.
How fast the home gains value each year.
How much your rent goes up each year.
What your savings earn if you invest them instead of buying.
Yearly tax as a share of the home's value.
Repairs and upkeep. 1% of the home's value is a common rule of thumb.
Home insurance plus any HOA or community fees.
Closing costs, taxes, and legal fees when you buy.
Agent fees and closing costs when you sell.
If you stay 7 years
Renting wins
You would end up $7,879 richer by renting. Buying pulls ahead in year 9. Sell before then and renting would have left you with more.
What each one costs a month, in year one
- Rent
- $2,500
- Total
- $2,500
All of it is gone once paid. In exchange, the $92,000 you did not spend on a down payment and buying costs stays invested.
- Mortgage payment
- $2,129
- Property tax
- $367
- Maintenance
- $333
- Insurance and fees
- $200
- Total
- $3,029
$271 of that pays down your loan, so you keep it as equity. The other $2,758 is gone once paid, the same way rent is.
What you would walk away with
Money in hand if you left in each year. Buying counts the sale price minus selling costs and the remaining loan. Renting counts the invested savings. The dashed line is the year you plan to leave. The table below covers all 30 years.
What would change the answer
| If... | Buying pulls ahead | After 7 years |
|---|---|---|
| Your numbers | Year 9 | Renting by $7,879 |
| Mortgage rate 1 point lower | Year 6 | Buying by $18,716 |
| Home prices grow 1 point faster | Year 5 | Buying by $21,597 |
| Home prices grow 1 point slower | Year 15 | Renting by $35,615 |
| Rent rises 1 point faster | Year 7 | Buying by $124 |
| Investments return 1 point less | Year 7 | Buying by $2,576 |
Year-by-year table
| Year | If you buy | If you rent | Ahead |
|---|---|---|---|
| 1 | $70,531 | $104,040 | Renting by $33,510 |
| 2 | $85,635 | $116,211 | Renting by $30,577 |
| 3 | $101,339 | $128,503 | Renting by $27,164 |
| 4 | $117,673 | $140,905 | Renting by $23,232 |
| 5 | $134,666 | $153,404 | Renting by $18,738 |
| 6 | $152,351 | $165,988 | Renting by $13,637 |
| 7 | $170,761 | $178,640 | Renting by $7,879 |
| 8 | $189,932 | $191,345 | Renting by $1,413 |
| 9 | $209,903 | $204,085 | Buying by $5,818 |
| 10 | $230,713 | $216,839 | Buying by $13,873 |
| 11 | $252,667 | $229,850 | Buying by $22,818 |
| 12 | $276,360 | $243,641 | Buying by $32,719 |
| 13 | $301,911 | $258,259 | Buying by $43,651 |
| 14 | $329,448 | $273,755 | Buying by $55,693 |
| 15 | $359,108 | $290,180 | Buying by $68,928 |
| 16 | $391,037 | $307,591 | Buying by $83,446 |
| 17 | $425,390 | $326,046 | Buying by $99,344 |
| 18 | $462,333 | $345,609 | Buying by $116,724 |
| 19 | $502,042 | $366,346 | Buying by $135,697 |
| 20 | $544,705 | $388,326 | Buying by $156,379 |
| 21 | $590,523 | $411,626 | Buying by $178,897 |
| 22 | $639,708 | $436,324 | Buying by $203,384 |
| 23 | $692,489 | $462,503 | Buying by $229,986 |
| 24 | $749,107 | $490,253 | Buying by $258,854 |
| 25 | $809,821 | $519,668 | Buying by $290,153 |
| 26 | $874,906 | $550,848 | Buying by $324,058 |
| 27 | $944,655 | $583,899 | Buying by $360,756 |
| 28 | $1,019,381 | $618,933 | Buying by $400,448 |
| 29 | $1,099,416 | $656,069 | Buying by $443,346 |
| 30 | $1,185,114 | $695,434 | Buying by $489,681 |
Educational estimate only. It assumes a fixed mortgage rate and steady growth rates, and it does not model income tax, capital gains tax, mortgage interest relief, or moving costs.
Track in Nethaven. Add your home and mortgage, and watch your equity move with your net worth.
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<p style="font:14px sans-serif">Rent vs Buy Calculator by <a href="https://nethaven.app/tools/rent-vs-buy-calculator">Nethaven</a></p>More calculators
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How the comparison works
Comparing a rent payment with a mortgage payment answers the wrong question. Part of a mortgage payment comes back to you as equity, and owning has costs a renter never sees. This calculator compares the only thing that settles it: how much money each path leaves you with on the day you move out.
The method
① Same starting cash down payment + buying costs the buyer spends it, the renter invests it ② Same monthly spending whoever pays less for housing invests the difference ③ Compare what is left each year buyer = home value - selling costs - loan left + savings renter = invested savings
With the starting example (a $400,000 home, 20% down, a 7% mortgage, and $2,500 rent), owning costs about $3,029 a month in year one against $2,500 for renting. Buying still pulls ahead in year 9, because rent rises 3% a year while the mortgage payment stays fixed and the home gains value. Leave after 7 years and renting comes out about $7,900 ahead.
Why the length of your stay decides it
Buying and selling are expensive. At 3% to buy and 6% to sell, a buyer gives up about 9% of the home's price in fees alone. Spread over 3 years that is a heavy yearly cost. Spread over 15 it almost disappears. That is why the slider at the top moves the result more than any other input.
What the model leaves out
This is an educational planning tool, not personal financial advice. It assumes a fixed mortgage rate and smooth yearly growth for home prices, rent, and investments. Real markets are uneven. It does not model income tax, capital gains tax, mortgage interest relief, moving costs, or a renter who spends the monthly difference instead of investing it. That last one matters: the renting result only holds if the savings really are invested.
Once you decide, keep the result honest: track your net worth in Nethaven with the home, the mortgage, and your investments in one place. To size the cash you need before buying, use the savings goal calculator. For the thinking behind the numbers, read how to find your rent vs buy break-even year, the 5% rule, and the price-to-rent ratio.
FAQ
Questions about this calculator
Not financial, tax, or investment advice. Calculator results are estimates for planning only; verify balances with your institutions.