About This Calculator

Purpose

This rent vs buy calculator is a free, simple tool designed to help you compare the financial costs of renting versus buying a property. Whether you're a first-time homebuyer, considering a move, or evaluating your housing options, this calculator provides a way to understand the financial implications of each choice over time.

The decision to rent or buy is one of the most significant financial choices many people face. This tool helps you understand the long-term costs and benefits of each option by providing detailed calculations based on your specific situation. By comparing total costs, equity build-up, and net worth over time, you can make a more informed decision about your housing future.

Neutrality and Independence

This calculator is an independent utility tool. We are not affiliated with any real estate agencies, mortgage lenders, property management companies, or financial institutions. We do not recommend specific properties, lenders, or financial services. Our goal is simply to provide a helpful calculation tool that anyone can use to estimate and compare housing costs.

We do not collect or sell your personal information, and we do not use this tool to generate leads or referrals for real estate or financial services.

Important Disclaimer

This calculator provides estimates only and does not constitute financial or real estate advice. The results are based on the assumptions you provide and standard financial formulas. Actual property values, interest rates, rent changes, market conditions, taxes, and other factors can vary significantly and will affect real-world outcomes.

We strongly encourage you to:

  • Consult with qualified real estate professionals for market-specific information
  • Speak with mortgage lenders to get accurate interest rates and loan terms
  • Consult with qualified financial professionals for personalized advice
  • Consider all factors beyond just financial costs (lifestyle, flexibility, maintenance, etc.)
  • Account for one-time costs like closing costs and selling fees in your analysis

How to Use This Tool

Using the calculator is straightforward. Simply enter your details on the calculator page:

  • Property price and down payment information
  • Mortgage interest rate and loan term
  • Monthly rent and expected annual rent increases
  • Property costs (taxes, insurance, maintenance, HOA fees)
  • Property appreciation and rent increase assumptions
  • Time horizon for comparison
  • Tax rate (if mortgage interest is tax-deductible in your area)

The calculator will automatically compute and display a comprehensive comparison including:

  • Monthly cost differences between renting and buying
  • Total costs over your specified time horizon
  • Net worth projections for each scenario
  • Equity build-up when buying
  • Break-even point analysis
  • Detailed year-by-year breakdown

All calculations update in real-time as you modify the inputs, allowing you to explore different scenarios and see how changes affect the comparison. The results are displayed clearly with color-coded indicators to help you quickly understand which option shows lower costs based on your inputs.

What This Tool Does NOT Do

This calculator is a mathematical comparison tool. It does not:

  • Provide financial, legal, or housing advice
  • Recommend whether you should rent or buy
  • Endorse any lenders, real estate agents, or property management companies
  • Guarantee accuracy of results or future market conditions
  • Account for one-time transaction costs (closing costs, realtor fees, moving expenses)
  • Consider opportunity cost of the down payment (what you could earn investing it elsewhere)
  • Factor in lifestyle considerations (flexibility, stability, maintenance responsibilities)
  • Account for market volatility and unexpected changes in property values or rent
  • Include all tax implications beyond basic mortgage interest deduction
  • Consider rental security deposits and other one-time rental costs

This tool provides estimates based on your inputs. Always consult qualified professionals and verify all figures independently.

Contact

If you have questions about this calculator or need to report an issue, please contact us.