What is the Rent vs Buy?
Compare a simplified multi-year cash-cost view of renting with buying a home.
This Calcwise tool is built around the question a user is actually trying to answer. The main result explains the outcome in plain language, while the supporting figures show how the answer was produced.
How to use this calculator
- Replace every example value with your own numbers.
- Read the What this means guide directly under each input.
- Check the main answer and the supporting breakdown.
- Enable Pro mode to compare an alternate years scenario without losing your main inputs.
Inputs used
- Current monthly rent — Your starting rent. Example: 1500
- Home purchase price — Property price before financing costs. Example: 300000
- Down payment — Share of the purchase price paid upfront. Example: 20
- Mortgage interest rate — Annual mortgage rate for the scenario. Example: 6.5
- Comparison period — How many years you expect to stay. Example: 7
- Annual rent increase — Estimated yearly rent growth. Example: 3
Rent vs Buy formula
The formula is shown so the result is not a black box. Where the result is an estimate, the assumptions are stated explicitly.
Worked example
The calculator opens with a usable example: Current monthly rent = 1500, Home purchase price = 300000, Down payment = 20. The live answer above shows what those sample inputs mean. Replace them with your own values to get your result.
Important assumptions and limitations
Simplified comparison. Property taxes, insurance, maintenance, appreciation, selling costs and tax treatment can materially change the decision.
Results should be treated as a planning aid. Real prices, platform rules, contracts, taxes, institutional policies, technical performance and other conditions can differ from a simplified calculator model.
Pro mode: compare another scenario
Pro mode changes the most decision-relevant driver while keeping the rest of your inputs fixed. This makes it easier to answer questions such as “what if this cost is higher?”, “what if I have less time?” or “what if performance changes?” without rebuilding the whole calculation.
Frequently asked questions
What does the Rent vs Buy calculate?
Compare a simplified multi-year cash-cost view of renting with buying a home.
What formula does the Rent vs Buy use?
Rent cost grows annually; buy cost includes down payment plus mortgage payments over the comparison period, before selling costs or appreciation.
What should I enter in the Rent vs Buy?
Use the examples shown under each field as a guide, then replace every sample value with the numbers from your own situation.
Is the Rent vs Buy result exact?
Simplified comparison. Property taxes, insurance, maintenance, appreciation, selling costs and tax treatment can materially change the decision.