Rent vs Buy Calculator
Compare the total cost of renting versus buying a home and find the break-even year.
Results update as you type.
About this calculator
Renting or buying is rarely obvious, and this rent vs buy calculator settles it on cost. Buying carries a down payment, mortgage interest, property tax and upkeep but builds equity as the home appreciates; renting is simpler but the money is gone and the down payment could have been invested instead. The tool tallies the net cost of each path year by year and finds the break-even year — the point at which buying pulls ahead of renting.
For buying it adds mortgage payments, property tax and maintenance, then subtracts the equity you build as the home appreciates; for renting it sums the rent (growing each year) minus what the invested down payment would earn. On a 350,000 home with 20% down at 7% versus 2,000 rent, high early interest and closing-type costs keep renting cheaper at first, and the break-even often lands several years out depending on appreciation and investment return.
Use it to decide whether to buy now or keep renting, and to test how the horizon, appreciation, rent growth and investment return shift the answer. On short stays renting usually wins; the longer you hold and the faster the home appreciates, the sooner buying comes out ahead.
Frequently asked questions
How is the break-even year found?
The tool tracks the cumulative net cost of buying (payments, tax and upkeep minus the equity you build) against renting (cumulative rent minus what the down payment could earn invested). The break-even year is when the buying line first drops below renting.
Why can renting win for years?
Buying front-loads big costs — the down payment, closing and interest-heavy early payments — while equity builds slowly. Until appreciation and paydown catch up, and if the invested down payment grows well, renting can stay cheaper, especially on short horizons.
How many years should I plan to stay before buying makes sense?
There is no fixed number, but the break-even year this tool finds is the answer for your inputs — stay longer and buying wins, sell sooner and renting was cheaper. High transaction and interest costs early on often push the break-even a few years out.
Why does the down payment’s investment return matter?
If you rent, the cash you would have used as a down payment can be invested instead. The calculator credits renting with that growth, so a higher assumed investment return makes renting look better and delays the break-even for buying.
Does this include the equity I build by buying?
Yes. Each year it subtracts your growing home equity — appreciation plus the principal you have paid down — from the cost of buying. That equity is the main reason the buy line eventually drops below the rent line.
What about maintenance and property tax?
Both are included on the buying side as annual percentages of the home’s value, alongside the mortgage. These ongoing ownership costs are why a home that barely appreciates can stay more expensive than renting for a long time.
API — use this calculator from code
Call this calculator as a free JSON endpoint — no key required. Send the field values below as query parameters or JSON. Read the full API docs →
Endpoint
GET https://calculator.free/api/v1/rent-vs-buy/curl
curl "https://calculator.free/api/v1/rent-vs-buy/?price=350000&down=20&rate=7&rent=2000&years=10"JavaScript fetch()
const r = await fetch(
"https://calculator.free/api/v1/rent-vs-buy/?" + new URLSearchParams({
"price": "350000",
"down": "20",
"rate": "7",
"rent": "2000",
"years": "10"
}));
const data = await r.json();
console.log(data.results);Results are estimates for general guidance only, not financial, medical or tax advice.