Rent vs. Buy Calculator

Compare the true cost of renting versus owning over your selected time horizon. We account for mortgage amortization, property taxes, insurance, maintenance, appreciation, rent inflation, and transaction costs so you can make a confident, data-backed decision.

Calculator

Home purchase

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Down payment input mode
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Results

PV total — Buy
$0
PV total — Rent
$0
Nominal total — Buy
$0
Nominal total — Rent
$0

Methodology (present value comparison)

PI = r × L / (1 − (1 + r)^(−n)) (fixed-rate mortgage)
PV = Σ (CashFlow_t / (1 + d)^t) with discount rate d
For rent, invested cash (down payment + buyer closing costs) compounds at your assumed return and is netted against rent totals.

FAQ

What costs are included for owners?

Mortgage P&I, taxes, insurance, maintenance, HOA, purchase closing costs, selling costs, and net sale proceeds.

Why use present value?

PV accounts for timing of cash flows, allowing fair comparison of monthly expenses and future proceeds.

Author: Ugo Candido. Reviewed by: Finance SME Team. Last updated: . Category: Finance › Mortgages.