Rent vs Buy US Calculator
Compare cumulative rent and buy costs with a 30-year fixed mortgage planning model.
Inputs
Results
Cumulative cost chart
Chart shows simplified cumulative out-of-pocket and opportunity costs by year.
How this calculator works
This US-focused rent vs buy calculator compares renting against buying a home using rent, home price, down payment, mortgage rate and term, property tax, insurance, HOA, maintenance, appreciation, investment return, and years staying.
Formula and assumptions
Buying cost includes down payment opportunity cost, mortgage payments net of estimated principal equity, property tax, insurance, HOA, maintenance, PMI while the loan stays above 80% of home value, purchase and selling friction, and home appreciation. Renting cost compounds rent by the annual rent increase and nets out invested opportunity cost.
FAQ
Why is this a US-focused variant?
It defaults to US dollars, 30-year fixed mortgage thinking, property tax, homeowners insurance, HOA, and maintenance assumptions.
Does it include tax deductions?
No. Tax deductions depend on household facts and law changes, so this simplified model excludes them.
What is break-even year?
It is the first year where the simplified cumulative cost of buying is lower than or equal to renting.
Why include investment return?
Money not used for a down payment or higher ownership costs could be invested, so opportunity cost matters in rent-vs-buy decisions.
