Rent vs Buy Calculator

Puts the cash spent on rent next to the cash spent buying a home and the equity left at the end. It does not decide which one is better.

1. Enter how many years to compare, the rent, and the yearly rent increase.
2. Enter the price, down payment, mortgage rate, and the yearly costs of owning.
3. Read rent cash, buy cash, equity, and buy cost after equity.

Rent cash beside a 30-year fixed purchase

Rent steps up once a year. The purchase uses a 30-year fixed loan: monthly interest is the balance times the annual rate divided by 12, rounded to the cent. Tax, insurance, association dues, and maintenance stay flat and use the purchase price. Equity is the home value after the appreciation rate, minus the remaining loan. Buy cost after equity is the cash paid minus that equity.

Source. Rent increases once a year. The loan payment is the standard fixed payment on a 30-year term, and each month's interest is the balance times the annual rate divided by 12, rounded to the cent. Tax, insurance, association dues, and maintenance stay flat. Equity is the appreciated price minus the remaining balance. The page reports both cash totals and does not rank them.

Updated November 1, 2026

Over 5 years, rent of $1,800.00 rising 3% a year costs $114,677.40 in cash. Buying at the sample price costs $227,437.40 in cash and leaves $143,635.14 of equity, so the buy cost after equity is $83,802.26.

• Selling costs, mortgage-interest tax deductions, and repairs beyond the maintenance percent are not included.
• The two cash totals answer different questions. Equity is still tied up in the house.

Does a lower number mean that choice is better?

No. Rent cash is money spent. Buy cash includes a down payment that becomes equity. Compare rent cash with buy cost after equity only after you have read what each line leaves out.