Rent vs. Buy Calculator
Compare the long-run cost of renting and investing the difference against buying with a mortgage, year by year.
After 7 years
Monthly mortgage payment (P&I)
Upfront cash to buy (down + ~3% closing)
Renter's net worth at the end
Buyer's net worth at the end (after ~6% selling costs)
The renter invests the down payment plus any month the rent is cheaper than owning. A simplified model: it ignores tax deductions, PMI and changing rates.
Helpful gear
Affiliate links
Monthly budget plannerTrack rent, utilities and savings as prices change.
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Fireproof document bagKeeps your lease, IDs, passports and insurance papers together and grab-ready.
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Apartment tool kitFor small fixes, furniture assembly and documenting move-in issues.
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Estimates are for planning only and are not financial, legal or insurance advice. Rules and costs vary by state, city and lease.
Frequently asked questions
Is renting throwing money away?
No. Renting buys housing plus flexibility and avoids the large costs of owning: interest, taxes, insurance, maintenance and the cost of buying and selling. Whether buying wins depends mainly on how long you stay and on prices and rates.
Why does how long I stay matter so much?
Buying and selling costs are large one-time hits. The longer you stay, the more time appreciation and principal paydown have to make up for them.