Rent vs. Buy Calculator
Is buying actually better than renting?
Renting is not throwing money away, and buying is not automatically an investment. This compares the two over 25 years, including what your down payment could have earned instead.
After 7 years
Buying comes out ahead in year 7.
Buy costs $2,187 less at this point.
| Buy | Rent | |
|---|---|---|
| Amount invested | $67,999 | $40,000 |
| Total expenses | $108,180 | $115,856 |
| Selling costs | $10,721 | — |
| Total cost | $186,900 | $155,856 |
| Property value | $214,427 | — |
| Mortgage balance | $132,001 | — |
| Net property value | $82,426 | — |
| Investment income | — | $9,195 |
| Total investment value | — | $49,195 |
| Net cost | $104,474 | $106,661 |
Small changes to appreciation, rent increases or expected return move this a lot. Treat the crossover year as a rough signal, not a prediction.
Want the real number?
Bring these figures to a licensed advisor and we will work through what a lender would actually approve.
What this is and is not
This is an estimate to help you plan, not a pre-approval, a loan offer, or a commitment to lend, and not tax, legal or financial advice. Your actual rate, insurance premium, fees, eligibility and payments depend on your full application and the lender’s own rules. Talk to a licensed advisor before you commit.
Rates shown were current on 2026-08-07. They change — confirm with us before you rely on them.