Rent vs Buy
Buying Costs
Renting Costs
10-Year Cost Comparison
206,350
Total Rent Paid
168,861
Total Buy Cost (net)
Buying saves 37,489 over 10 years
Rent vs Buy — What This Calculator Considers
Buying costs include all mortgage payments plus annual maintenance, minus the home equity you accumulate (principal paid + appreciation). The down payment's opportunity cost (what you could have earned investing it) is not included in this simplified model.
The "better" option depends heavily on your time horizon. Buying typically wins over longer periods as equity builds; renting is often cheaper short-term.
Frequently Asked Questions
When does buying beat renting?
Buying typically becomes advantageous after 5–7 years in most markets, as equity builds and the mortgage becomes fixed while rents rise. The exact break-even point depends on local prices, mortgage rates, and rent growth.
What costs are not included?
This calculator omits property taxes, homeowner insurance, HOA fees, closing costs, and the opportunity cost of the down payment. Including these would generally make buying more expensive in the short term.
Does renting waste money?
Renting provides housing, flexibility, and avoids maintenance costs and market risk. It is not "wasted" — it is an exchange for a service. The financial comparison depends entirely on local market conditions and personal circumstances.
What's Included
- Buy: mortgage payments, maintenance, down payment opportunity cost, minus home equity gained
- Rent: all rent payments over the period