Rent vs Buy Calculator

Should you rent or buy? Home ownership is a great way to build long-term wealth, and the interest portion of your mortgage payment may be tax deductible. However, renting may make more sense over shorter periods—and a larger standard tax deduction recently may make renting more attractive than it once was. This calculator helps you compare the total cost of renting versus buying a home over time, so you can make an informed decision that fits your situation.

Buying a Home

Enter the home price, down payment, and mortgage details.

These are example values. Update them to reflect your personal situation.

$
$50,000 $10,000,000
$
$0 $10,000,000
%
years

Renting

Enter your current or expected monthly rent and how much it may increase each year.

$
$500 $100,000
%

Should you rent or buy? Home ownership is a great way to build long-term wealth, and the interest portion of your mortgage payment may be tax deductible. However, renting may make more sense over shorter periods—and a larger standard tax deduction recently may make renting more attractive than it once was. This calculator helps you compare the total cost of renting versus buying a home over time, so you can make an informed decision that fits your situation.

Your Rent vs. Buy Comparison

Based on a 30-year comparison period.

Buying Costs Less

$0

comparison text
home Buy a Home
Loan Amount
$0
Monthly Payment
$0
Total Payments (30 Years)
$0
Total Payments (5 Years)
$0
apartment Rent a Home
Starting Monthly Rent
$0
Final Year Monthly Rent
$0
Total Rent Paid (30 Years)
$0
Total Rent Paid (5 Years)
$0

Cumulative Cost Over Time

The Mortgage Interest Rate and Annual Rent Increase are both hypothetical examples used for illustrative purposes only. They do not represent any specific mortgage rate or any renting market. Actual returns will fluctuate. The illustration does not take into account property tax, insurance, maintenance, or other costs. Calculations do not take into consideration home resale value nor the costs of resale.

Have A Question About This Topic?

Thank you! Oops!

Related Content

The Power of Compound Interest

The Power of Compound Interest

Learn how to harness the power of compound interest for your investments.

To Buy or Not to Buy

To Buy or Not to Buy

The decision whether to buy or rent a home may have long-term implications.

Four Reasons Millennials Need an Estate Strategy

Four Reasons Millennials Need an Estate Strategy

Estate strategies for millennials may sound like less of a concern than retirement, but young adults should prepare now.