Real Estate Rent vs Buy Calculator
Compare renting vs buying a home. Enter rent, home price, mortgage rate. Get monthly costs and total comparison. Free online calculator with instant
Use this result well
- Inputs that matter
- Home Price, Down Payment, Mortgage Rate, Monthly Rent, and 1 more
- Output to expect
- Rent vs Buy Calculator
- Check the units and required inputs before comparing results.
- Keep the assumptions with a copied result so you can reproduce the calculation later.
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Reference & details
How it works
Updated July 2026
How it works
Updated July 2026Monthly Ownership Cost
Total monthly cost of owning includes mortgage payment (P&I), property tax, insurance, HOA fees, and maintenance (typically 1% of home value annually).
Monthly Cost = Mortgage P&I + (Property Tax + Insurance + Maintenance) ÷ 12Break-Even Horizon
Buying becomes financially favorable when equity buildup and appreciation exceed transaction costs (typically 5–7 years). Closing costs are ~2–5% of purchase price.
Break-Even ≈ Closing Costs ÷ (Monthly Rent − Net Monthly Ownership Cost + Monthly Equity Build)Standard Calculation
The Rent vs Buy Calculator applies the canonical formula for this domain using validated reference equations. Inputs are type-checked and unit-normalized before evaluation.
Result = f(input₁, input₂, …)Updated: July 2026
Example Scenarios
Comparing $2,200/month rent against buying a $450,000 condo with 20% down at 6.5% for 30 years.
→ Mortgage ~$2,280 + tax/insurance ~$600 = ~$2,880/month ownership
A couple comparing renting a house at $1,800/month vs buying at $320,000 in a lower-cost market.
→ Buying may break even in ~5 years with 3% annual appreciation
A professional uses the Rent vs Buy Calculator during client work to produce accurate numbers quickly without opening a spreadsheet.
Common Mistakes to Avoid
Common Mistakes to Avoid
Comparing rent to mortgage payment only
Ownership includes property tax, insurance, maintenance (~1%/year), HOA, and opportunity cost of down payment. A $2,000 mortgage often means $2,800+ total monthly cost.
Ignoring mobility and transaction costs
Selling costs (agent fees ~5–6%) mean short-term ownership (<5 years) rarely beats renting financially, even if monthly costs are similar.
FAQ
About Real Estate Rent vs Buy Calculator
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