Should you rent or buy? Enter the home price, mortgage terms, rent and how long you plan to stay, and this calculator compares the true cost of each path side by side. Free, instant, no sign-up.
The home purchase scenario.
The renting scenario, over the same period.
Monthly mortgage payment (P and I): -
Total cost of buying: -
Total cost of renting: -
Equity built by buying: -
Simplified model: ignores investment returns on the down payment, closing costs and tax deductions. Treat it as a starting point, not financial advice.
The buying side totals your down payment, monthly principal and interest, property tax, insurance and maintenance over the years you stay, then subtracts the equity you built (home value minus remaining loan balance). The renting side totals monthly rent with its annual increase.
The verdict shows which path costs less in net terms over your time horizon, not just per month.
This is a simplified model. It ignores closing costs, what your down payment could have earned if invested, tax deductions, HOA fees and selling costs. Those can swing a close call, so treat the result as a starting point for the decision, not financial advice.
Rule of thumb the math confirms: the longer you stay, the more buying tends to win, because equity builds while rent keeps rising.