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Rent vs Buy Calculator
True cost comparison including opportunity cost, appreciation, and maintenance.
📝 Your Situation
$
$
6.8%
$
3%
7%
10yrs
📊 True Cost Comparison
NET ADVANTAGE OF BUYING
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vs renting over your time horizon
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Net Buy Cost
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Net Rent Cost
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Equity Built
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Opportunity Cost
💡 Key InsightEnter your details to see the comparison.
What's Included in This Comparison
Buying costs: Mortgage payments, property tax, insurance, maintenance (1% of value/year), closing costs (3%) — minus equity built and home appreciation.
Renting costs: Monthly rent × months + opportunity cost (what your down payment would grow to if invested).
Frequently Asked Questions
What is opportunity cost in this comparison? ▼
If you buy, your down payment is tied up in home equity. If you rented instead, that money could be invested in the market. Opportunity cost is what that money would have grown to — a real hidden cost of buying that most calculators ignore.
How long do I need to stay for buying to make sense? ▼
The general rule of thumb is 5+ years. The upfront costs of buying (closing costs, fees) are substantial, usually 3 to 6% of purchase price. Shorter horizons rarely justify buying. Use the time horizon slider to find your break-even point.
⚠️ Simplified model for educational comparison. Does not include all tax deductions, PMI, or HOA. Not financial advice.