Rent vs Buy Calculator: Which Option Saves You More?

Compare estimated monthly rent with the cost of owning a home using this rent vs buy calculator. Enter your rent, home price, down payment, mortgage rate, loan term, and monthly taxes and insurance to see how the two options compare based on your inputs.

1. Monthly rent: Enter your current or expected monthly rental payment.
2. Home price: Add the purchase price of the property you are considering.
3. Down payment: Enter the amount you plan to pay upfront.
4. Mortgage rate: Use the expected annual interest rate on your home loan.
5. Loan term: Select the repayment period in years.
6. Taxes and insurance: Enter your estimated combined monthly property taxes and homeowners insurance.

Select Compare Rent vs Buy to view the estimated monthly mortgage payment, total monthly ownership cost based on the included expenses, and the difference between renting and buying.

The calculator estimates your monthly principal-and-interest mortgage payment using the home price minus your down payment. It then adds the monthly property taxes and insurance you enter to estimate the monthly ownership cost.

That amount is compared with your monthly rent. If the estimated ownership cost is lower, the calculator indicates that buying is cheaper on a monthly basis. If it is higher, renting is cheaper under the selected assumptions.

This is a monthly cash-cost comparison, not a complete assessment of which option offers the better long-term financial outcome.

Homeownership involves more than mortgage payments, property taxes, and insurance. You may also need to budget for maintenance, repairs, utilities, closing costs, mortgage insurance, and homeowners association fees where applicable. These expenses can make owning a home more expensive than the calculator’s estimate.

Renting can offer greater flexibility and fewer direct maintenance responsibilities, while buying may help you build equity through mortgage principal repayment. Property appreciation can also affect the long-term outcome, but future home values are not guaranteed.

Renting may suit you if you expect to move soon, want to preserve your savings, or prefer more predictable housing responsibilities. Buying may be worth considering if you can comfortably afford the upfront costs and ongoing expenses and expect to stay in the property long enough to justify the purchase.

For a more detailed estimate of homeownership expenses, use the Mortgage Calculator With Taxes and Insurance. You can also estimate your upfront contribution with the Down Payment Calculator.

Important: Results depend on the figures you enter. This calculator compares estimated monthly rent with mortgage principal and interest plus the entered taxes and insurance; it does not include all ownership costs, rent increases, investment returns on savings, property appreciation, or the equity built by repaying the mortgage. Consider these factors before making a housing decision.