Free Rent vs Buy Calculator (US) – Should You Rent or Buy a Home?

Use our free Rent vs Buy Calculator for the US market to compare the long-term financial impact of renting a home versus buying one. This tool helps you understand which option may lead to higher estimated net worth based on your assumptions.

The Rent vs Buy Calculator models common real-world factors such as rent growth, mortgage payments, home appreciation, property taxes, maintenance costs, and investment returns. It is designed to support scenario testing—not to predict outcomes or provide financial advice.

Rent vs Buy Calculator comparing renting versus buying a home in the United States

What this Rent vs Buy Calculator does?

This Rent vs Buy Calculator compares two paths over a selected time horizon: continuing to rent and investing the difference, or buying a home and building equity over time. The results are based entirely on the inputs you provide and simplified assumptions.

Estimates total costs of renting versus owning over time
Models home equity growth and net sale proceeds
Accounts for rent increases, maintenance, taxes, and transaction costs
Shows the estimated break-even point where buying may outperform renting

Rent vs Buy Calculator

Compare the estimated financial outcome of renting versus buying a home over a chosen time horizon. This is an educational financial tool—not financial advice.

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Privacy-first

No logins. No saved inputs.

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Transparent

Clear assumptions + outputs.

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Educational

Not financial advice.

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US-friendly defaults

Adjust for your area.

Inputs

Tip: Run multiple scenarios (higher/lower appreciation, different rent growth, different investment return).

Renting

Monthly rent $ Current monthly rent. Annual rent increase % Average annual rent growth assumption.

Renter’s insurance (monthly) $ Optional; set to $0 if none. Security deposit (one-time) $ If refundable, it’s returned at the end (simplified).

Buying

Home price $ Purchase price. Down payment % Percentage of home price paid upfront.

Mortgage rate % Annual interest rate. Loan term yrs Standard is 30 years.

Property tax % / yr As % of home value per year. Home insurance (annual) $ Annual homeowners insurance.

Maintenance % / yr As % of home value per year. HOA (monthly) $ Set to $0 if none.

Closing costs (buy) % one-time Upfront transaction costs as % of price. Selling costs (when you sell) % of sale Agent fees + selling costs (simplified).

Market assumptions

Home appreciation % / yr Average annual home value growth (assumption). Investment return (renting side) % / yr Used to invest: down payment + monthly “rent vs buy” difference.

Time horizon yrs How long until you might move or sell. Monthly value of flexibility $ Optional: add a “renting benefit” if you value flexibility.

How this model works (simple, transparent):

Buying costs include mortgage payment, property tax, insurance, maintenance, HOA, and transaction costs.
Renting costs include rent (growing annually) and renter’s insurance.
Renting side invests the down payment + any monthly savings when renting is cheaper than buying.
Buying side builds equity and ends with net proceeds after selling costs and remaining mortgage payoff.

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Results

Estimated outcomes at the end of your chosen horizon.

Winner

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Net worth difference (Buy − Rent)

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Renting outcome

Invested balance—

Total rent paid—

Total insurance paid—

Net worth (estimate)—

Buying outcome

Home value—

Mortgage balance—

Equity (before sell costs)—

Net proceeds after sale—

Break-even year Estimated

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First year when buying net worth exceeds renting net worth.

Net worth over time Yearly points

Reference (educational): Consumer Financial Protection Bureau (CFPB) – Owning a Home

How to Use This Rent vs Buy Calculator

This Rent vs Buy Calculator is designed for quick, realistic scenario testing. Start with conservative assumptions and run 2–3 variations.

Step-by-step

Enter your current rent and expected annual rent increase.
Enter a target home price, down payment %, mortgage rate, and loan term.
Adjust homeowner costs like property tax, insurance, maintenance, and HOA fees.
Set your expected home appreciation and investment return assumptions.
Review the “Winner,” net worth difference, and the break-even year produced by this Rent vs Buy Calculator.

What the results mean

The goal of this Rent vs Buy Calculator is not to predict the future—it’s to quantify trade-offs. If the net worth difference is small, the decision may be more about lifestyle, stability, and flexibility than pure dollars.

Methodology (simplified model)

Renting: total rent and renter’s insurance are tracked, and the model invests the down payment and any monthly savings when renting is cheaper.
Buying: the model estimates mortgage amortization, property tax, insurance, maintenance, and HOA, and ends with net sale proceeds after selling costs and remaining mortgage payoff.
Break-even year: the first year where buying net worth exceeds renting net worth.

Good scenarios to test

For better decisions, run this Rent vs Buy Calculator with (a) lower appreciation, (b) higher maintenance, and (c) different mortgage rates. If buying only wins under very optimistic assumptions, that’s useful information.

If you want deeper precision, we can expand this Rent vs Buy Calculator to include PMI, tax impacts, and inflation-adjusted (real) returns.

FAQ

Short, practical answers to common questions.

What does this calculator actually compare?

It compares the estimated end-of-horizon “net worth” outcome of renting versus buying. Renting net worth is modeled as invested assets (down payment + monthly savings if renting is cheaper). Buying net worth is modeled as the net proceeds from selling the home (after selling costs and remaining mortgage payoff).

Does it include taxes (mortgage interest deduction, SALT, etc.)?

Not in this version. Taxes can be highly personal and depend on itemization, brackets, and local rules. This tool is intentionally simplified. If you want, we can add an optional “tax benefit” toggle later.

Why does “investment return” matter for renting?

Renting can free up capital (down payment and monthly differences) that you could invest. The return assumption helps model that opportunity cost.

What inputs change the answer the most?

Typically: home appreciation, rent growth, mortgage rate, time horizon, selling costs, and maintenance. If results are close, small changes in assumptions can flip the winner.

Is buying always better if I stay longer?

Often, but not always. Longer time horizons can help buying overcome transaction costs, but high rates, high maintenance, or low appreciation can still make renting competitive.

Educational Disclaimer

InvestingLab.com provides educational financial tools and simulations only. We do not provide financial, tax, or legal advice. Results are illustrative and depend on user-provided assumptions.