Rent vs. Buy Calculator
A new state. A new neighborhood. A big housing decision. Use this rent vs buy calculator to compare upfront funds, monthly budgets and costs over the years you expect to stay.
One home decision.
Two five-year budgets.
Invented example with a flat home value and flat rent. See the full assumptions below. AI-generated home photo; not a property listing.
Should you rent or buy after moving?
Compare the total cost over your expected stay, then check your upfront funds and monthly budget. A mortgage payment alone cannot answer the question. This tool includes ownership costs and a modeled sale, while keeping the refundable rental deposit separate. It excludes investment returns, tax benefits and moving costs.
Your rent vs buy calculator
Use a local rental quote, a lender’s fixed-rate loan quote and property-specific costs. Choose Load example to see the five-year scenario. Blank optional fields count as $0, so fill in every cost that applies.
- 01Set your stayChoose how long you expect to live there.
- 02Add both budgetsInclude fees, insurance and maintenance.
- 03Test what changesTry different stays and resale values.
Examples are invented, not market averages, current mortgage rates or forecasts. The lowest modeled cost may still require more cash than you can comfortably commit.
Inputs are saved in this browser after calculation. They do not sync across devices. No email or account number is requested.
A five-year rent vs buy example
Suppose you compare a $350,000 home with a $2,000 monthly rental. Put $70,000 down and finance the rest for 30 years at an invented 6.5% fixed rate.
With the assumptions below, renting costs $49,398 less over five years. That result belongs to this example; it is not a recommendation for every move.
Buying: $237,687 budgeted outlay − $66,889 net sale proceeds = $170,798 modeled cost.
Results shown here are rounded to the nearest dollar. The calculator displays cents.
| Measure | Buy | Rent |
|---|---|---|
| Starting monthly budget | $2,628 | $2,020 |
| Initial funds, before monthly bills | $80,000 | $2,200 |
| Total budgeted outlay before sale | $237,687 | $121,400 |
| Net proceeds after loan and sale costs | $66,889 | — |
| Five-year cost | $170,798 | $121,400 |
What goes into the example?
Buying assumptions
$10,000 in one-time buying costs, $5,000 yearly property tax, $1,800 yearly home insurance and $3,500 yearly maintenance. HOA fees and mortgage insurance are $0.
The home sells for $350,000 after five years. Selling costs are an invented 6% of the sale price. That leaves about $66,889 after paying those costs and the remaining loan.
Renting assumptions
$2,000 monthly rent, $20 monthly renters insurance and a $200 nonrefundable start fee. Rent stays flat throughout the five years.
A $2,000 rental deposit adds to initial funds. The model assumes a full refund, so it excludes that deposit from the $121,400 renting expense. First rent is separate from the $2,200 initial-funds figure.
What if you stay three, five or ten years?
Keep all the example inputs the same and change only the stay. Longer ownership does not automatically make buying cheaper when rent and resale assumptions stay flat.
| Stay | Buying cost after sale | Renting expense | Lower modeled cost |
|---|---|---|---|
| 3 years | $115,581 | $72,920 | Rent by $42,661 |
| 5 years | $170,798 | $121,400 | Rent by $49,398 |
| 10 years | $303,748 | $242,600 | Rent by $61,148 |
The live result includes a stay-length comparison using your own entries. Use it to test an earlier move as well as your planned stay.
Resale value can change the answer
For the same five-year example, vary only annual home-value change. These are sensitivity checks, not price forecasts. Rent stays flat and all other inputs remain unchanged.
| Annual value change | Buying cost after sale | Renting expense | Lower modeled cost |
|---|---|---|---|
| -2% | $202,408 | $121,400 | Rent by $81,008 |
| 0% | $170,798 | $121,400 | Rent by $49,398 |
| +3% | $118,397 | $121,400 | Buy by $3,003 |
Four checks before you choose a home
Compare similar homes
Match the area, space, commute and condition as closely as possible. Also compare utilities, parking and other costs outside this model. Use the state comparison tool for the wider relocation picture.
Keep cash available
A lower long-term cost does not solve a cash shortage today. Leave room for repairs, overlapping housing and the move itself. Add these items to your 12-month moving budget.
Read the loan quote carefully
Check principal and interest separately from taxes, insurance and other charges. The CFPB Loan Estimate explainer helps you find these figures. Use the note rate here rather than APR.
Allow for changed plans
Try an earlier move, weaker resale value and higher annual costs. If you want time to explore neighborhoods, include temporary housing and storage costs in your transition budget.
How the rent vs buy calculator works
Buying cost after a modeled sale
The model starts with the down payment and one-time buying costs. Each month, it adds the fixed mortgage payment and entered ownership costs. Interest applies to the remaining loan balance; the rest of the payment reduces principal. Scheduled loan payments stop at the end of the mortgage term.
At the end of your stay, the model estimates a sale. It subtracts selling costs and the remaining loan from the sale price. Those net proceeds reduce the total buying outlay.
Net buying cost = down payment + one-time buying costs + mortgage payments + ownership costs − net sale proceeds.
Net sale proceeds = modeled sale price − selling costs − remaining loan.
Renting expense and deposits
Renting expense includes the start fee, monthly rent and renters insurance. Rent changes once each year by your entered rate. The rental deposit affects initial funds only; the model assumes the landlord returns it in full. Any actual deduction would add to renting expense.
Avoid counting closing items twice
Enter one-time purchase charges after credits, such as loan, title and inspection costs. Keep escrow funding and prepaid tax or insurance out of that field when the same expense is already in your annual costs. This simplified model does not reproduce the timing of those payments.
For the actual amount needed at closing, use your lender’s documents and the CFPB Closing Disclosure explainer. The calculator’s initial-funds row is not a cash-to-close statement or a complete moving-day budget.
What the model leaves out
It excludes investment returns on your down payment or monthly savings, personal tax benefits, utilities, moving costs and unentered charges. It does not model refinancing, extra principal payments, adjustable rates, special assessments or mortgage-insurance cancellation.
Property tax, insurance, HOA fees and maintenance stay constant. The model treats the entire maintenance allowance as a cost, even if you actually save part of it. Only rent and resale value change with your growth assumptions. Large repairs, payment timing and local rules may change your outcome.
Model version 1.1 · Reviewed October 5, 2026 · U.S. planning tool. No live rate or property-price feed is used. Calculations do not send your entries to a lender or quote provider; normal website analytics are separate.
Renting or buying: common questions
Is it better to rent or buy when moving to a new state?
Compare the full cost over your likely stay, the cash you need upfront and your monthly budget. Buying may build equity, but it also creates purchase and sale costs. Renting may give you time to learn the area. Use local quotes and test a shorter stay before choosing.
How many years do I need to stay for buying to be cheaper?
There is no universal break-even year. It depends on purchase price, rent, financing, ownership costs and resale value. This rent vs buy calculator compares several stay lengths using your inputs. A lower modeled cost is not a guarantee that buying fits your budget or plans.
Is a mortgage payment the same as the cost of owning?
No. Principal repays the loan, while interest is a financing cost. Your budget also needs room for property tax, insurance, maintenance, HOA charges and mortgage insurance where applicable. The calculator tracks loan repayment and credits modeled net sale proceeds when you leave.
Does the upfront figure equal my actual cash to close?
No. Buying upfront funds here include the down payment and entered one-time buying costs. The model does not reproduce escrow funding, prepaid items, credits or payment timing. Use your lender’s Loan Estimate and Closing Disclosure for actual closing cash. Rental deposits and start fees also exclude your first rent payment.
Can I use the rent vs buy calculator for a cash purchase?
Yes. Set the down payment equal to the home price and enter 0 for the mortgage rate. The mortgage payment becomes zero. Still include ownership costs and selling costs. The model excludes any investment return you could have earned on the cash used to buy.
Does this calculator assume that home prices always rise?
No. Enter a positive, zero or negative annual home-value change. The same assumption compounds each year until the modeled sale. Compare several values, and try higher maintenance or insurance costs too. The tool does not predict prices, future rent or your personal tax outcome.
Your housing decision is one part of the budget
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Planning information only, not tax, legal or financial advice. Check the relevant agency or provider before acting. Report a correction