How this comparison works
This calculator estimates the net cost of each option over the years you plan to stay:
- Buying adds up your down payment, closing costs (~3%), mortgage payments, property tax, maintenance and insurance — then subtracts the equity you'd recover when you sell (home value minus remaining loan and ~6% selling costs).
- Renting adds up the rent you'd pay (rising each year), then credits you for investing the down payment you didn't spend, growing at your chosen return.
The lower net cost is the financially cheaper option — though buying also brings stability and renting brings flexibility, which the math can't capture.
The biggest factor: how long you stay
Buying has large upfront costs (down payment, closing, and later selling fees). The longer you stay, the more those costs spread out and the more equity and appreciation you build. As a rule of thumb, the longer your time horizon, the more buying tends to win. Try lowering "years you'll stay" to a year or two and watch renting pull ahead.
Planning to buy?
Mortgage rates
A lower rate can swing this comparison toward buying. Compare lenders before you commit.
Compare lenders →If you rent, invest the difference
Renting only wins long-term if you actually invest what you save. Put it to work.
Compare brokers →Frequently asked questions
Is this exact?
No — it's a planning estimate using simplified assumptions (3% closing costs, 6% selling costs, constant rates). Your real situation involves taxes, PMI, and local factors. Use it to understand the trade-offs, not as a precise quote.
Why does renting credit investment growth?
Because a fair comparison assumes a renter invests the large down payment a buyer would have tied up in the house. If you wouldn't actually invest it, buying looks relatively better.
Related tools
See your monthly payment on the mortgage calculator, or how the down payment could grow on the compound interest calculator.