Rent vs buy calculator: compare the long-term cost of each

Buying a home ties up money in a property, while renting lets you keep it invested elsewhere. Enter the home price, your down payment, the loan terms, the rent and your assumptions about price growth and investment returns, and this calculator compares the long-term outcome of each path.

The comparison counts the rent you would pay, rising each year, against the cost of owning: interest, the money tied up in the down payment and the value the home may have at the end. The answer depends heavily on your assumptions about appreciation and returns, so change them to see how robust the result is. It leaves out things money cannot measure, like stability and flexibility.

Frequently asked questions

Is buying always better than renting?

No. In some cities and price ranges renting works out cheaper over many years, while in others owning wins. It depends on price, rent and the return on the money you would otherwise invest.

What assumptions matter most?

The rate at which the property appreciates, how fast rent rises, and the return on the down payment if you invest it instead.

Does it include tax benefits?

Check the inputs. Home loan deductions depend on the tax regime you are in and can change the result for some buyers.

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