Rent vs. Buy Calculator
The true net cost of renting vs. buying over the years you plan to stay, equity included.
Every calculation runs locally in your browser. This models a common set of assumptions — real closing costs, tax rates, and investment returns vary by location and circumstance. Not financial advice.
Buying is cheaper by
$52,244
over 7 years
Net cost of buying
$131,655
Net cost of renting
$183,899
Monthly cost to own
$2,723
P&I + tax + maintenance
Equity if you sold at exit
$189,045
Home worth $508,912
For informational and educational purposes only — not financial, investment, or tax advice, and not a substitute for consulting a qualified professional about your specific situation. TrueMeasureKit is not liable for decisions made based on these results. See our Terms of Service.
Why the math favors buying less the shorter you stay
Buying's net cost nets out the equity you'd walk away with — home value plus paydown, minus the remaining mortgage balance and selling costs — against everything you paid in: the down payment, closing costs, and every monthly payment along the way. Renting's cost is simply the rent paid, since a renter has no equity to net out. Closing and selling costs are largely fixed regardless of how long you stay, so they weigh heavily on a short stay and fade in relative importance the longer you own — which is why "how long will you stay" tends to matter more than the interest rate itself.
Frequently asked questions
What costs does this comparison include?
On the buy side: mortgage principal and interest, property tax, insurance, maintenance, and closing costs, offset by home equity built and price appreciation. On the rent side: rent payments plus the return your down payment would have earned if invested instead.
Why might renting still come out ahead even if buying builds equity?
Because the down payment and closing costs have an opportunity cost — money invested elsewhere could grow too. Over short holding periods, transaction costs on buying (and eventually selling) often outweigh the equity built.
What's the breakeven point this calculator shows?
The number of years you'd need to stay in the home before buying becomes cheaper than renting, given your inputs. Move before that point and renting was likely the better financial choice.