Rent vs Buy FAQ
Is it cheaper to rent or buy?
It depends mostly on how long you stay. Buying has high upfront costs, so over a short period renting is often cheaper, while over a longer period the equity and appreciation from owning usually win. This calculator finds the answer for your numbers.
How does this calculator compare renting and buying?
It adds up the net cost of each. For buying: down payment + mortgage payments + home costs, minus the equity you build. For renting: total rent with yearly increases. The option with the lower net cost is cheaper.
How long should I plan to stay to make buying worth it?
There's no universal number, but the longer you stay the more buying tends to pay off because purchase costs are spread over more years and equity grows. Many buyers use a rough 5-year guideline as a starting point.
What costs does the calculator leave out?
It excludes closing costs, selling costs (like agent fees), and the investment return you might earn by investing your down payment instead. Each of these can shift the result, so treat it as a guide.
Does building equity make buying cheaper?
Yes. Equity — your home's value minus the remaining loan — is money you keep, so it offsets your buying costs. It's the main reason buying often beats renting over the long term.
Is the rent vs buy calculator free to use?
Yes, this rent vs buy calculator is completely free, needs no sign-up, and gives instant results directly in your browser.
