How is the comparison calculated?

Renting is monthly rent times the months. Buying is the down payment plus monthly ownership cost times the months. The smaller total is cheaper on cash.

Does it include equity or appreciation?

No. It compares cash spent only. Buying also builds equity and may gain value, which this simple version doesn't model.

What goes in the monthly cost to own?

Mortgage payment plus property taxes, insurance, and a maintenance allowance — the recurring costs of ownership.

Why does the period matter?

The down payment is a big upfront cost. Over a longer period it spreads thinner, which usually shifts the comparison toward buying.

Should I rent or buy based on this?

Use it as a starting point. A full decision also weighs equity, appreciation, flexibility, and what the down payment could earn invested.

Can I share a calculation?

Yes. Use Share to copy a link that reopens the calculator with the same figures.

Rent vs buy calculator

Enter your monthly rent, the monthly cost of owning, your down payment, and the years to compare. The calculator shows which is cheaper on cash spent, and the total for each path.

Use it to see whether renting or buying costs less in cash over your chosen period.

Renting is cheaper

$18,000

Total to rent: $180,000
Total to buy: $198,000

The result updates as you type. The headline names the cheaper option and the gap; the others show the total to rent and the total to buy. This comparison uses a simplified cash-cost model. It does not replace full home-buying advice; real outcomes depend on taxes, maintenance, appreciation, selling costs, and your personal finances.

How does it work?

This compares cash spent only. It ignores the equity you build, any change in home value, and what the down payment could earn if invested. A full decision should weigh those too.

Rent vs buy comparison

\text{rent} = R\,m,\quad \text{buy} = D + B\,m

R: Monthly rent.
B: Monthly cost of owning.
D: Down payment.
m: Months in the comparison (years × 12).

Renting at 1,500 vs owning at 1,400 a month with 30,000 down, over 10 years: rent 180,000, buy 198,000 — renting is 18,000 cheaper on cash out.

Expert tips

This comparison uses a simplified cash-cost model. It does not replace full home-buying advice; real outcomes depend on taxes, maintenance, appreciation, selling costs, and your personal finances.

Method & sources

Renting total is monthly rent times the months in the period. Buying total is the down payment plus monthly ownership costs over the period. It compares cash spent only.

Sources

Where this method comes from — use these references to understand the formula, assumptions, and limits.

Rent vs. buy — housing decisions — U.S. Consumer Financial Protection Bureau, verified 2026-06-10

How we calculate

Renting total is monthly rent times the months in the period.
Buying total is the down payment plus monthly ownership costs over the period.
It compares cash spent only.
Equity, home appreciation, and the down payment's opportunity cost are ignored.

Limitations

This comparison uses a simplified cash-cost model. It does not replace full home-buying advice; real outcomes depend on taxes, maintenance, appreciation, selling costs, and your personal finances.

Rounding

Money is shown as whole units. The calculation uses full precision.

What this calculator does

Renting and buying have very different cash patterns: rent is a steady monthly outlay, while buying front-loads a down payment and then carries monthly costs. This calculator adds each path up over your chosen period and shows which spends less cash.

How to use it

Enter your monthly rent.
Enter the monthly cost to own (mortgage, taxes, maintenance).
Enter your down payment and the years to compare.
Read which option is cheaper and by how much.

A worked example

Renting at 1,500 versus owning at 1,400 a month with 30,000 down, over 10 years: rent totals 180,000, buying totals 198,000 — renting is 18,000 cheaper on cash out.

What this leaves out

This is a cash comparison only. Buying builds equity and the home may rise in value, while the down payment could earn returns if invested instead. A full decision should weigh those alongside the cash totals.

Common mistakes

Leaving taxes, insurance, and maintenance out of the ownership cost.
Ignoring equity and appreciation, which favour buying over time.
Comparing too short a period to capture the down payment's effect.

When it's useful

A first-pass cash comparison when deciding whether to rent or buy, or to see how the period and down payment change which wins.

FAQ

How is the comparison calculated?: Renting is monthly rent times the months. Buying is the down payment plus monthly ownership cost times the months. The smaller total is cheaper on cash.
Does it include equity or appreciation?: No. It compares cash spent only. Buying also builds equity and may gain value, which this simple version doesn't model.
What goes in the monthly cost to own?: Mortgage payment plus property taxes, insurance, and a maintenance allowance — the recurring costs of ownership.
Why does the period matter?: The down payment is a big upfront cost. Over a longer period it spreads thinner, which usually shifts the comparison toward buying.
Should I rent or buy based on this?: Use it as a starting point. A full decision also weighs equity, appreciation, flexibility, and what the down payment could earn invested.
Can I share a calculation?: Yes. Use Share to copy a link that reopens the calculator with the same figures.

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