Rent vs Buy Home Cost Comparison Calculator

Rent versus buy is a cash-flow and opportunity-cost problem, not a moral one. Buying replaces rent with a mortgage, taxes, insurance, and upkeep, and it ties up a down payment that could otherwise stay invested. Over a short stay, transaction costs and a large down payment often dominate. Over a longer stay, amortization and appreciation can offset those drags. The rent vs buy calculator puts both paths on the same horizon so the comparison is at least internally consistent. The mortgage payment is the standard amortizing payment on home price minus down payment. Estimated rent cost sums each month’s rent, compounding the annual rent-increase rate monthly as (1 + rent increase)^(month index / 12). Estimated ownership cost adds mortgage payments over the stay, property tax (price × tax rate × years), insurance, maintenance (price × maintenance rate × years), the down payment cash outlay, and the foregone investment return on that down payment: down payment × ((1 + investment return)^years − 1). Projected home value = price × (1 + appreciation)^years. The ownership total is a cash-outlay view, not an accountant’s net cost after selling. It does not subtract remaining principal or add sale proceeds, and it does not deduct mortgage interest for tax. That keeps the rent stack comparable to money leaving the household. If ownership cost is far above rent but the projected home value has grown, equity may still justify buying; the four results have to be read together. Closing costs, HOA dues, PMI, selling commissions, and moving costs are omitted. So are landlord-paid repairs on the rent side. Use local tax, insurance, and rent quotes, then review a material decision with a lender or adviser. If you might move in two or three years, run a short stay before you trust a seven-year base case, and add a second scenario with higher tax or slower appreciation.