Buying isn't automatically cheaper than renting — it depends on how long you stay, appreciation, and what your down payment could earn invested. This calculator simulates both paths over your horizon and tells you which actually costs less.
Settings
Buying
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Renting
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yrs
Net cost of buying
$172,309
over your horizon
Net cost of renting
$168,553
over your horizon
Verdict
Renting is cheaper by $3,756 over 7 years
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How it's calculated
Buying cost = down + closing + all mortgage/tax/maintenance over the horizon − home equity recovered at sale.
Renting cost = total rent paid − the investment growth your down payment + closing could have earned.
Whichever net cost is lower wins for your specific time horizon.
If you rent, you can invest the money you would have used for a down payment. That growth (opportunity cost) is subtracted from renting's cost to make a fair comparison.
How long until buying wins?
It varies, but the longer you stay, the more buying tends to win — closing and selling costs are spread over more years. Try different horizons to find your break-even.