Rent vs. Buy Calculator
Compare the average yearly cost of buying and renting for every length of stay up to 30 years, with the break-even point.
Change the values and press Calculate to work out your own figures.
Enter the home, the loan, the rent and your taxes.
| Years | Buying a month | Buying a year | Renting a month | Renting a year |
|---|---|---|---|---|
| 1 | $6,760.33 | $81,123.96 | $3,033.02 | $36,396.25 |
| 2 | $4,962.51 | $59,550.09 | $3,130.79 | $37,569.50 |
| 3 | $4,416.93 | $53,003.15 | $3,234.79 | $38,817.53 |
| 4 | $4,186.16 | $50,233.93 | $3,343.06 | $40,116.73 |
| 5 | $4,082.77 | $48,993.22 | $3,455.30 | $41,463.57 |
| 6 | $4,044.32 | $48,531.82 | $3,571.49 | $42,857.88 |
| 7 | $4,044.10 | $48,529.15 | $3,691.71 | $44,300.52 |
| 8 | $4,068.78 | $48,825.34 | $3,816.06 | $45,792.73 |
| 9 | $4,111.00 | $49,331.97 | $3,944.67 | $47,335.99 |
| 10 | $4,166.36 | $49,996.37 | $4,077.66 | $48,931.90 |
| 11 | $4,232.11 | $50,785.37 | $4,215.18 | $50,582.17 |
| 12 | $4,306.43 | $51,677.16 | $4,357.38 | $52,288.59 |
| 13 | $4,388.08 | $52,656.98 | $4,504.42 | $54,053.04 |
| 14 | $4,476.21 | $53,714.54 | $4,656.45 | $55,877.46 |
| 15 | $4,570.22 | $54,842.62 | $4,813.66 | $57,763.87 |
| 16 | $4,669.67 | $56,036.04 | $4,976.20 | $59,714.37 |
| 17 | $4,774.26 | $57,291.11 | $5,144.26 | $61,731.14 |
| 18 | $4,883.77 | $58,605.21 | $5,318.03 | $63,816.42 |
| 19 | $4,997.84 | $59,974.04 | $5,497.71 | $65,972.53 |
| 20 | $5,115.84 | $61,390.12 | $5,683.49 | $68,201.90 |
| 21 | $5,237.73 | $62,852.74 | $5,875.58 | $70,507.00 |
| 22 | $5,363.45 | $64,361.44 | $6,074.20 | $72,890.42 |
| 23 | $5,492.99 | $65,915.91 | $6,279.57 | $75,354.82 |
| 24 | $5,626.33 | $67,516.01 | $6,491.91 | $77,902.97 |
| 25 | $5,763.47 | $69,161.67 | $6,711.48 | $80,537.72 |
| 26 | $5,904.41 | $70,852.92 | $6,938.50 | $83,262.02 |
| 27 | $6,059.75 | $72,717.03 | $7,173.24 | $86,078.92 |
| 28 | $6,221.76 | $74,661.12 | $7,415.97 | $88,991.59 |
| 29 | $6,387.06 | $76,644.74 | $7,666.94 | $92,003.29 |
| 30 | $6,555.73 | $78,668.76 | $7,926.45 | $95,117.40 |
Show the working
- each cost carries its lost return at your after-tax investment return
- buying cost = spent − (sale price less costs − loan balance) + tax on the gain
- average = total ÷ years stayed
How to use it
Enter the home, the loan, the rent and your taxes.
Enter amounts without commas or with them; rates are percentages (5 for 5%). Negative amounts are allowed where a sign means money paid out.
Key facts
each year: spent = spent × (1 + after-tax return) + payments + taxes + insurance + HOA + maintenance − tax saving buying cost (stay n years) = spent − (value × (1 − selling costs) − loan balance) + tax on the gain renting cost = Σ rent and insurance grown at the return + the deposit's lost return average = total ÷ years
What counts
Money spent on a home or rent could have been invested, so each cost carries its lost return. Buying gets back the home's sale price less the loan balance; renting gets back the deposit.
Taxes
Mortgage interest and property tax only save tax when, together, they exceed the standard deduction. The SALT cap here is the 2026 cap before its phase-down above $505,000 of income.
Questions
Why does the filing status matter?
It sets the standard deduction: married couples have a larger one, so their mortgage interest saves less tax.
Formulas
each year: spent = spent × (1 + after-tax return) + payments + taxes + insurance + HOA + maintenance − tax saving buying cost (stay n years) = spent − (value × (1 − selling costs) − loan balance) + tax on the gain renting cost = Σ rent and insurance grown at the return + the deposit's lost return average = total ÷ years
Sources
Limitations
- Results are estimates for planning, not offers or financial advice; lenders and banks may round, count days or time payments differently.
- Rates are nominal annual rates compounded as you choose; payments at a different frequency use the equivalent periodic rate.