Rent vs Buy Calculator
Compare the financial outcomes of renting versus buying a home. Factor in mortgage costs, property taxes, maintenance, appreciation, and rent increases.
Parameters
Results Summary
Buy ✓This calculator determines the results based on the following standard financial formula for Rent vs Buy Analysis:
Variables Glossary
- Total Rent Cost
- Cumulative rent paid over the analysis period
- Total Buy Cost
- Total cost of buying (down payment, EMIs, taxes, maintenance)
- Net Equity
- Home value minus remaining mortgage balance
- Breakeven Year
- Year when buying becomes more beneficial than renting
The calculator compares two scenarios over the same period. Renting: cumulative rent payments with annual increases. Buying: down payment + EMIs + property taxes + maintenance, offset by home appreciation and equity buildup.
Is it always better to buy than rent?
Not always. Buying is better when you plan to stay long-term (typically 5+ years), have stable income, and can afford the down payment and maintenance. Renting offers flexibility, lower upfront costs, and predictable monthly expenses.
What factors should I consider in the rent vs buy decision?
Key factors include: how long you plan to stay, home price appreciation, rent increases, mortgage rates, property taxes, maintenance costs, and your down payment amount. The breakeven point is typically 3-7 years depending on these variables.