Rent vs Buy Calculator
Compare the cost of renting versus buying a home based on rent, home price, mortgage rate, taxes, insurance, HOA fees, and maintenance costs.
Enter the monthly rent you currently pay or expect to pay.
Enter the purchase price of the home you are considering.
Enter the amount you plan to put down upfront.
Enter the expected mortgage interest rate.
Choose the mortgage term for the home purchase.
Enter estimated annual property taxes.
Enter estimated annual homeowners insurance.
Optional. Enter monthly HOA fees if they apply.
A common estimate is around 1% of home value per year for maintenance.
How This Calculator Works
This calculator compares renting and buying by estimating the monthly and annual cost of each option. For buying, it includes mortgage principal and interest, property taxes, homeowners insurance, HOA fees, and a basic maintenance estimate.
Formula
Monthly Buying Cost = Mortgage Payment + Taxes + Insurance + HOA + Maintenance
Example
If rent is $2,200 per month and buying a $400,000 home would create a total monthly housing cost of $2,650, renting may cost less in the short term. But the long-term decision can also depend on equity, future home prices, and how long you plan to stay.
Frequently Asked Questions
Is buying always better than renting?
Not always. Buying can build equity over time, but renting may cost less in the short term and can offer more flexibility.
What costs are included when buying?
This calculator includes mortgage payment, property taxes, home insurance, HOA fees, and maintenance. It does not include closing costs, utilities, or home value appreciation.
Why include maintenance costs?
Homeowners often need to budget for repairs and upkeep, so maintenance is an important part of the full cost of owning a home.
Does renting include hidden costs too?
Sometimes. Renters may still pay utilities, renters insurance, parking, pet fees, or rent increases over time.
Should I base the decision only on one year?
No. This calculator is a simple comparison tool. A full rent vs buy decision should also consider how long you plan to stay, opportunity cost, equity growth, and future housing market conditions.