This guide explains how our rent vs buy calculator works, what each input means, and how accurately it reflects real-world housing costs.
The calculator compares the total cost of renting versus buying over time. It simulates how much money you would spend (or build in equity) under each scenario.
To keep the calculator simple and useful, several assumptions are made:
The total value of the home. The loan amount is the portion financed after your down payment.
The amount paid each month to live in a rental property.
The portion of the home you truly own. This increases as you pay down your mortgage.
The increase in home value over time.
Ongoing costs such as repairs, upkeep, and improvements.
Includes mortgage payments, taxes, insurance, and maintenance.
This calculator provides a strong estimate based on typical financial assumptions, but real-world outcomes can vary depending on market conditions and personal factors.
This tool should be used as a guideline—not a guarantee.
Renting may be better if you plan to move soon or want flexibility.
Buying may be better if you plan to stay long-term and build equity.