# Rent vs buy calculator: should I rent or buy? | Should I Rent or Buy

Source: https://shouldirentorbuy.org/

# Rent vs buy calculator

Should I rent or buy? Enter your own numbers. The calculator compares what you would be worth each year if you bought a home and sold it, against renting and investing the money you did not spend on owning. It runs in your browser and saves nothing.

## Your result

Buying pulls ahead in year 9

$2,873 Cost to own in month one: payment, tax, insurance, HOA, maintenance, and PMI if any.
$2,215 Rent plus renters insurance in month one.
$2,023 Principal and interest each month.
$92,000 Cash at closing: down payment plus closing costs.

After 10 years, buying leaves you about $234,029 after selling costs and paying off the loan. Renting and investing the difference leaves about $222,268.

| Year | Buy | Rent | Ahead |
| --- | --- | --- | --- |
| 1 | $70,857 | $104,787 | Rent +$33,930 |
| 2 | $86,291 | $117,665 | Rent +$31,373 |
| 3 | $102,330 | $130,621 | Rent +$28,291 |
| 4 | $119,001 | $143,643 | Rent +$24,642 |
| 5 | $136,332 | $156,717 | Rent +$20,385 |
| 6 | $154,354 | $169,826 | Rent +$15,472 |
| 7 | $173,101 | $182,955 | Rent +$9,854 |
| 8 | $192,604 | $196,085 | Rent +$3,480 |
| 9 | $212,901 | $209,196 | Buy +$3,705 |
| 10 | $234,029 | $222,268 | Buy +$11,761 |

Net worth by year (selected years when the stay is long)

## How to read the result

The year buying pulls ahead is the break-even point. If you expect to move before then, renting is likely the cheaper choice on these numbers. If you expect to stay well past it, buying is likely to build more wealth, assuming the inputs hold.

The model counts every owner cost you enter, the cash you tie up at closing, and what that cash could have earned if invested. It does not count income-tax effects, and it does not predict prices. See the [method](https://shouldirentorbuy.org/method/) for each step.

Example inputs only. Your numbers will move the crossing point.

## Questions

### Is this rent vs buy calculator free?

Yes. It runs in your browser. Calculator inputs stay in your browser. The optional inquiry form is the only thing sent.

### Why does renting win in the first years?

Buying has large one-time costs: the down payment and closing costs up front, and selling costs when you leave. Early on, most of each mortgage payment is interest. It takes time for appreciation and principal paydown to cover those costs.

### Are the default numbers today’s market rates?

No. They are example inputs so the tool shows a result when it loads. Replace the rate with a quote from a lender and the price, taxes, and rent with numbers for your area.

## Talk to a real estate professional

Want a person to look at renting or buying with you? Send an inquiry from the calculator page. This site does not name an agent or promise a call.

For loan terms, the [CFPB’s homebuyer tools](https://www.consumerfinance.gov/owning-a-home/) explain how to compare official Loan Estimates.

The inquiry asks for a name, an email or a phone number, and optional notes: rent or buy interest, city or area, timing, and a message. Numbers typed into the calculator stay in the browser.