Does the calculator include tax deductions?

No. It keeps tax effects out of the default model because itemization, SALT limits, mortgage-interest caps, filing status and state rules vary.

Why does investment return matter?

If renting has lower monthly cash outflow or avoids a down payment, the saved cash could be invested. That opportunity cost is part of a fair comparison.

Is buying always better long term?

No. The result depends on local home prices, rent, mortgage rates, appreciation, costs, investment returns and how long you stay.

Rent vs Buy Calculator

Compare renting and buying a home with mortgage payments, rent growth, home appreciation, owner costs, selling costs, and investment opportunity cost.

Home price ($)

Required

Down payment ($)

Default is $0

Mortgage rate (%)

Annual fixed rate

Mortgage term (years)

Default is 30 years

Monthly rent ($)

Required

Rent increase (%/yr)

Default is 0%

Home appreciation (%/yr)

Default is 3%

Time horizon (years)

Default is 10 years

Investment return (%/yr)

Opportunity cost for invested cash

Owner costs (%/yr)

Property tax, insurance, HOA and maintenance as a percent of home value

Buying closing costs ($)

Loan, title and other upfront transaction costs

Selling cost (%)

Agent commission and seller closing costs

Renting vs buying with opportunity cost

English rent-vs-buy search results expect more than a mortgage payment comparison. A useful model compares home equity and ownership costs with rent paid and the investment growth of cash that is not tied up in the home.

Home price, down payment, mortgage rate and loan term.
Monthly rent and expected rent increases.
Home appreciation, owner costs, buying costs and selling costs.
Investment return for the down payment and monthly payment gap.
A sensitivity view for appreciation, investment return and time horizon.

Local assumptions matter

Property tax, insurance, HOA dues, maintenance, mortgage terms, market returns and transaction costs vary by location and lender.

Comparison model

B u y n e t = E q u i t y + I n v es t e d p a y m e n t g a p - C a s h o u t f l o w s

R e n t n e t = I n v es t e d d o w n p a y m e n t + I n v es t e d p a y m e n t g a p - R e n t p ai d

W inn er = max (B u y n e t, R e n t n e t)

The calculator intentionally keeps tax effects out of the default model because US itemization, SALT limits, mortgage-interest caps and state rules can make a simple tax checkbox misleading.

Inputs to review carefully

Input	Why it matters
Time horizon	Buying costs are front-loaded, so staying longer can change the break-even picture.
Owner costs	Property tax, insurance, HOA and maintenance can be material beyond principal and interest.
Investment return	Renting may leave more cash to invest, but returns are uncertain.
Selling cost	Agent commissions and seller closing costs reduce net equity when the home is sold.

Frequently Asked Questions

Sources and References

Calculations are based on the listed reference sources. Links open in a new tab.

Updated: June 2, 2026

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