# Rent vs. Buy Calculator

> Rent vs buy calculator: compare monthly renting costs against owning a home including mortgage, taxes, and upkeep to find your break-even point. Free, no signup.

- **Canonical URL:** https://boringtoolskit.com/rent-vs-buy-calculator/
- **Category:** Finance & Investing
- **Evidence level:** authored-methodology
- **Reviewed:** July 2026
- **Last verified:** 2026-09-20
- **Privacy:** Inputs and results stay in this browser unless the page clearly labels an external request.

## How it works

The buyer scenario amortizes the mortgage monthly, grows home value, subtracts estimated selling costs and remaining loan, and reports net equity. The renter scenario invests the buyer’s upfront cash and each monthly difference between ownership cost and rent. The result compares buyer equity with the renter portfolio at the selected horizon.

## Worked example

Using a $400,000 home, 20% down, 6.5% mortgage, seven-year horizon, $2,200 starting rent, and the displayed cost/growth assumptions, modeled buyer equity is about $173,101 versus a renter portfolio near $187,586, so renting leads by about $14,485.

## Assumptions

- Monthly cash-flow differences are invested or withdrawn from the renter portfolio at the entered return.
- Property tax and maintenance scale with modeled home value; insurance is entered separately.
- Tax deductions, investment volatility, moving costs, HOA, utilities, renovations, and local transaction details are excluded.

## Common questions

### Why compare wealth instead of only monthly cost?

The renter can invest the buyer’s upfront cash and monthly savings, while the buyer accumulates home equity; comparing only payments misses both effects.

### Is the result a forecast?

No. Appreciation, investment returns, rent increases, maintenance, and transaction costs are assumptions that can change materially.

### Does it include tax deductions?

No. Tax treatment is personal and jurisdiction-specific, so the calculator excludes deductions rather than assuming a benefit.

## Related tools

- /mortgage-payment-calculator/
- /down-payment-calculator/
- /rent-affordability-calculator/

## Sources

- [Buying a house](https://www.consumerfinance.gov/consumer-tools/mortgages/)

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