Rent vs Buy Calculator
Compare renting vs buying with real financial projections. See break-even year, net worth comparison, and cumulative costs over time.
• 30-year fixed-rate mortgage assumed for all calculations.
• Renter invests the down payment and any monthly savings at the specified return rate.
• Property tax and maintenance costs increase with home appreciation.
• Does not include closing costs, realtor fees (typically 5-6% on sale), or moving costs.
• Does not account for mortgage interest tax deduction or capital gains exclusion.
• Investment returns are pre-tax and assume consistent annual returns (actual returns vary).
• Rent increases are applied uniformly each year.
This calculator provides estimates for educational purposes only. Real estate and investment decisions involve many factors not captured here, including local market conditions, tax implications, lifestyle preferences, and opportunity costs.
This is not financial advice. Consult a qualified financial advisor, real estate professional, and tax advisor before making major housing decisions.
How to Use Rent vs Buy Calculator
- 1Enter your current rent and expected increases
- 2Set home purchase details (price, rate, down payment)
- 3Review break-even timeline
- 4Compare net worth projections
Frequently Asked Questions
Is buying always better than renting?▾
No. Buying makes more financial sense if you plan to stay 5+ years. For shorter periods, renting and investing the down payment may result in higher net worth.
What is the break-even point for buying?▾
The break-even point is when buying becomes cheaper than renting cumulatively. This typically ranges from 3-7 years depending on local market conditions, interest rates, and price appreciation.
What costs are included in buying?▾
Total buying costs include mortgage payments, property taxes (1-3% of value), insurance, maintenance (1-2% of value/year), PMI if applicable, and closing costs (2-5% of purchase price).
About Rent vs Buy Calculator
Compare renting vs buying with real financial projections. See break-even year, net worth comparison, and cumulative costs over time.
NexTool's Rent vs Buy Calculator is completely free to use with no sign-up required. Your data is processed directly in your browser and never sent to our servers, ensuring complete privacy and instant results.
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