Login

Rent vs Buy Calculator

Should you rent or buy? Home ownership is a great way to build long-term wealth, and the interest portion of your mortgage payment may be tax deductible. However, renting may make more sense over shorter periods—and a larger standard tax deduction recently may make renting more attractive than it once was. This calculator helps you compare the total cost of renting versus buying a home over time, so you can make an informed decision that fits your situation.

Buying a Home

Enter the home price, down payment, and mortgage details.

These are example values. Update them to reflect your personal situation.

$
$50,000 $10,000,000
$
$0 $10,000,000
%
years

Renting

Enter your current or expected monthly rent and how much it may increase each year.

$
$500 $100,000
%

Should you rent or buy? Home ownership is a great way to build long-term wealth, and the interest portion of your mortgage payment may be tax deductible. However, renting may make more sense over shorter periods—and a larger standard tax deduction recently may make renting more attractive than it once was. This calculator helps you compare the total cost of renting versus buying a home over time, so you can make an informed decision that fits your situation.

Your Rent vs. Buy Comparison

Based on a 30-year comparison period.

Buying Costs Less

$0

comparison text
home Buy a Home
Loan Amount
$0
Monthly Payment
$0
Total Payments (30 Years)
$0
Total Payments (5 Years)
$0
apartment Rent a Home
Starting Monthly Rent
$0
Final Year Monthly Rent
$0
Total Rent Paid (30 Years)
$0
Total Rent Paid (5 Years)
$0

Cumulative Cost Over Time

The Mortgage Interest Rate and Annual Rent Increase are both hypothetical examples used for illustrative purposes only. They do not represent any specific mortgage rate or any renting market. Actual returns will fluctuate. The illustration does not take into account property tax, insurance, maintenance, or other costs. Calculations do not take into consideration home resale value nor the costs of resale.

Have A Question About This Topic?

Thank you! Oops!

Related Content

What to Look for in Personal Finance Apps

What to Look for in Personal Finance Apps

An increasing number have been developed to help individuals with their personal finances.

Medicare Advantage Plans (Medicare Part C)

Medicare Advantage Plans (Medicare Part C)

Medicare Part C allows you to choose a Medicare Advantage plan. This article will help you decide if it's right for you.

Estate Management Checklist

Estate Management Checklist

Is your estate in order? This short quiz may help you assess your overall strategy.