US & Home
Rent vs Buy Calculator
Compare estimated monthly rent and ownership cost. Change the inputs below and the estimate updates immediately.
Input
Your numbers
Calculated result
Estimated monthly ownership cost
$2,722.62
Monthly rent
$2,200.00
Monthly difference
$522.62
Estimate only. Verify important decisions with an appropriate professional or official source.
How to use it
A quick estimate, without the spreadsheet.
Inputs and units
Enter monthly rent, purchase price, down payment, mortgage rate and term, plus monthly tax, insurance and HOA costs.
Formula
Monthly ownership cost = mortgage principal-and-interest payment + entered monthly expenses; difference = ownership cost − rent.
Worked example
$1,500 mortgage payment plus $500 expenses compared with $1,800 rent means ownership is $200 higher monthly.
Assumptions and limitations
Compares monthly cash flow only. Maintenance, purchase and sale costs, appreciation, opportunity cost and equity accumulation are excluded.
Understanding your result
The comparison shows monthly cash leaving your budget for rent versus the entered ownership costs. A positive ownership-minus-rent difference means ownership costs more per month in this scenario. It does not determine which option creates more wealth over time.
A practical comparison
If principal and interest are $1,500 and monthly property tax, insurance and HOA total $500, ownership costs $2,000 per month in this model. Compared with $1,800 rent, the gap is $200. Add your own maintenance budget and upfront purchase costs before deciding whether that gap is manageable.
Common mistakes
- Enter property tax and insurance as monthly amounts, dividing annual bills by twelve.
- Include all applicable association charges.
- Do not treat principal payments, rent and interest as economically identical: principal can build equity, while equity is also exposed to price changes and selling costs.
Frequently asked questions
Does the result include home appreciation?
No. It compares monthly cash flow and does not project property values, rent increases or investment returns on a down payment.
What else should I compare?
Consider how long you expect to stay, maintenance, transaction costs, access to cash and the risk of unexpected expenses. A monthly difference alone cannot resolve those choices.
Further guidance: CFPB homebuying resources.