Rent vs Buy Calculator

How to use the Rent vs Buy Calculator

1. 01
   Enter the home price and financing. Set the purchase price, down payment %, and mortgage rate for the home you'd buy.
2. 02
   Enter your monthly rent. Use the rent for a comparable place you'd otherwise rent.
3. 03
   Pick a time horizon. How long you expect to stay. Buying usually wins only after several years — the tool shows the break-even year.

How is it calculated?

The tool compares the cumulative cost of buying versus renting over your horizon. Buying = down payment + closing costs + mortgage payments + ownership costs (~2.25%/yr for tax, insurance, maintenance) minus the equity you build from paying down principal and ~3% annual appreciation. Renting = rent growing ~3% per year. The break-even year is when buying first becomes cheaper.