Rent vs. Buy Calculator
Compare the total cost of renting versus buying a home over a set number of years, factoring in rent increases, home appreciation, and ownership costs.
Renting
Buying
% of home price
Cheaper option over 7 years
Renting
What Your Result Means
Total rent cost adds up your rent payments (with annual increases) over the comparison period. Net buy cost adds up your down payment, mortgage payments, and maintenance, then subtracts the equity gained from home appreciation - giving a fairer side-by-side comparison.
How It Is Calculated
For renting, Calqora sums monthly rent year by year, increasing it annually by your entered rate. For buying, it sums the down payment, total mortgage payments, and maintenance costs, then subtracts the estimated gain in home value (appreciation) over the same period.
Worked Example
Renting at $2,000/month (3% annual increases) versus buying a $400,000 home with $80,000 down at 6.5% over 7 years often favors buying once appreciation is factored in - but the exact answer depends heavily on your specific numbers and local market.
Important Assumptions
- Home appreciation is not guaranteed - it's an assumption you control, and real markets fluctuate.
- Does not include selling costs (agent commissions, closing costs) if you were to sell after the comparison period.
- Does not account for opportunity cost of investing your down payment elsewhere instead.
Frequently Asked Questions
- Does this include selling costs when I move out?
- No - if you plan to sell the home at the end of your comparison period, remember that agent commissions and closing costs (often 6-10% of sale price) would reduce your net proceeds.
- What if I'm not sure how long I'll stay?
- Try a few different values for 'years to compare' - buying generally becomes more favorable the longer you stay, due to fixed costs like closing costs being spread over more years.
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Calculate the down payment amount and resulting loan amount for any home price.
Methodology
This calculator combines the standard mortgage formula with compounding rent increases and home appreciation. See our methodology page for details.
This calculator provides estimates for educational purposes only. Actual rates, taxes, insurance, fees, and lender terms may differ. It does not constitute financial advice - consult a qualified financial professional before making financial decisions.