The Rent vs. Buy Calculator compares the total cost of buying a home with renting over time, including mortgage, taxes, maintenance, appreciation, rent increases and the investment return on money not spent.
Renting is cheaper than buying over 10 years by $28,977.75.
| Net cost of buying over 10 years | $349,138.14 |
| Net cost of renting over 10 years | $320,160.39 |
| Monthly mortgage payment | $2,666.85 |
| Buying becomes cheaper after | more than 10 years |
Buying builds equity and protects you from rent increases, but it ties up a large down payment and adds costs renters do not have: property tax, insurance, maintenance and the cost of buying and selling. Renting is flexible and lets the down payment be invested elsewhere. Which is cheaper depends on prices, rates and how long you stay.
Each year the calculator adds up the cost of owning (mortgage payments, property tax, insurance, HOA, maintenance) and of renting (rent and renter's insurance, both rising each year). At the end it subtracts the home's sale value minus selling costs and the remaining loan from the buying cost, and credits the renter with the investment growth of the down payment and any monthly savings. The result is a net cost for each choice by year.
Buying usually loses in the first few years because of closing costs and selling costs, then pulls ahead as equity grows and rent rises. The break-even year shows when buying becomes cheaper. If you expect to move sooner, renting is often the better deal.
Is rent "throwing money away"? Not necessarily; mortgage interest, taxes and maintenance are also unrecoverable costs.
What price-to-rent ratio favours renting? Above roughly 20 (price ÷ yearly rent), renting often wins.
Are tax benefits included? This estimate leaves them out for simplicity; most buyers now take the standard deduction.