How to calculate rent vs buy
Buy = down + closing + payments + tax/insurance/maintenance − (sale value × 0.94 − loan balance) Rent = total rent − investment growth on (down + closing)
Worked example. Renting saves you over 7 years: $9,809.
Example inputs — Home price: $400,000; Down payment (%): 20; Mortgage rate (%): 6.5; Monthly rent: $2,200; Years you'll stay: 7; Property tax (% of value/yr): 1.1; Home insurance (per year): $1,800; Maintenance (% of value/yr): 1; Home appreciation (%/yr): 3; Rent increase (%/yr): 3; Investment return (%/yr): 6. Starting values are illustrative.
From George Guju, founder of Calculyn · Educational calculator guidance, not professional advice.
How it works
Buying costs your down payment, closing costs (3%), mortgage payments, property tax, insurance and maintenance — minus the equity you walk away with after 6% selling costs. Renting costs your rent — minus what your down payment and closing costs would have earned if invested instead.
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Assumptions & limitations
- Results are rounded for display.
Formula and assumptions reviewed October 2026 by the Calculyn team. How we build our calculators
Frequently asked questions
How long do I need to stay for buying to win?
Often 5–10 years, depending on prices, rates and rent. Change 'Years you'll stay' to find your break-even point.
Does this include tax deductions?
No. Most households take the standard deduction, so mortgage interest deductions often don't apply.