Calculate& Decide

Home & Transport calculator

Rent vs Buy Calculator

This calculator compares total rent with the estimated net cost of owning after mortgage payments, property costs, sale proceeds, and remaining loan balance.

Updated · Inputs stay in your browser

Educational estimate: This result is not financial, tax, legal, or investment advice. Check real terms and consider qualified advice for important decisions.

Enter your values

Choose the symbol used to display amounts.
Current or expected monthly rent.
Purchase price.
Share of price paid upfront.
Fixed annual interest rate.
Full repayment term.
Comparison period.
Estimated upfront transaction costs.
As a share of the original price.
As a share of the original price.
Negative values model falling prices.
As a share of estimated sale value.

Your values stay on this device. Nothing is sent to Calculate & Decide unless you deliberately use your device's share feature.

What this result means

This calculator compares total rent with the estimated net cost of owning after mortgage payments, property costs, sale proceeds, and remaining loan balance. The results panel explains the main number and the quantities that produced it, so you can check whether the estimate answers your real question.

Formula used

Rent cost = monthly rent × months. Buy net cost = cash paid − (sale value − selling costs − remaining loan balance).

Step-by-step calculation

  1. Validate every required value and reject values outside the stated field limits.
  2. Convert rates and time periods to the units required by the formula.
  3. Calculate with full JavaScript number precision; do not round intermediate values.
  4. Round only the displayed result and explain the practical meaning.

Worked example

For a $300,000 home, 20% down, a 6.5% 30-year loan, and a five-year stay, the result combines down payment, closing, mortgage, tax, and maintenance, then subtracts estimated sale equity. Compare that with 60 months of rent.

Assumptions and limitations

  • Home value grows at a constant annual rate and the property is sold after the entered stay.
  • Taxes and maintenance are simple annual percentages of the original price.
  • Insurance, utilities, tax effects, opportunity cost, and rent increases are excluded.

How to use this calculator

  1. Choose a currency symbol when the tool uses money.
  2. Enter values in the units shown beside each field.
  3. Select Calculate, then read both the main result and interpretation.
  4. Change one uncertain input at a time to understand sensitivity.
  5. Use Copy result or Share only when you choose to move the result outside this page.

Common mistakes

  • Comparing rent only with the mortgage payment.
  • Ignoring transaction costs and the remaining mortgage balance.
  • Treating uncertain appreciation as guaranteed.

Frequently asked questions

Is the lower estimate always the better choice?

No. Stability, flexibility, location, risk, and personal plans also matter.

Does buying cost subtract equity?

Yes. Estimated sale proceeds after selling costs and loan payoff reduce the net ownership cost.

Are taxes and insurance included?

Property tax is included from your input; home insurance and tax benefits are not.

Methodology and sources

See the site-wide calculation methodology and editorial standards. Formula errors can be reported through the error-reporting instructions.

Published and reviewed .