Is renting cheaper than buying?

Sometimes. The answer depends on your down payment, mortgage rate, taxes, maintenance, closing costs, expected stay length, and local rent levels.

What costs do buyers forget?

Property tax, insurance, HOA dues, closing costs, maintenance, and the opportunity cost of the down payment are commonly overlooked.

Should I include maintenance?

Yes. Even if repairs are not monthly, homeownership usually carries ongoing upkeep costs that renters often do not pay directly.

When does buying start to make sense?

Often when you plan to stay longer, can handle the upfront cash needs, and the ongoing owner costs compare well to local rent.

Mortgage vs Rent Calculator

Use this mortgage vs rent calculator to compare renting and buying over your expected time horizon, including monthly owner costs and optional opportunity cost on the down payment.

Compare renting and buying assumptions

High-level comparison

Monthly mortgage payment

$1,770

Total monthly owner cost

$2,570

Estimated total renting cost

$193,094

Estimated total buying cost

$294,862

Renting looks less expensive over this time horizon under the assumptions entered.

How this calculator helps

Renting versus buying is rarely just about one monthly payment. Buying includes taxes, insurance, HOA dues, maintenance, closing costs, and the down payment tied up in the home.

Renting can look simpler month to month, but over longer horizons rising rent may change the balance. Time horizon is one of the biggest variables in the decision.

This calculator is intentionally high-level. It is designed to frame the tradeoff clearly, not replace lending, tax, or legal advice.

How the math works

Monthly mortgage payment uses the standard amortization formula based on loan principal, rate, and term.

Total monthly owner cost = mortgage payment + property tax + home insurance + HOA + maintenance.

Buying total = down payment + closing costs + monthly owner cost over the time horizon. Renting total grows rent annually based on your entered increase rate.

Worked examples

Short three-year horizon

A buyer may move again soon and does not have a long horizon to spread closing costs.

• Expected years in home: 3
• Closing costs included
• Rent compared over same period

Short stays often make renting look more flexible and cheaper on a pure cash basis.

Long ten-year horizon

A household plans to stay put for a decade and expects rent to rise over time.

• Expected years in home: 10
• Annual rent increase: 3%

Longer horizons often improve the relative case for buying, depending on rate and maintenance assumptions.

High-interest environment

Mortgage rates are elevated and borrowing costs noticeably increase owner payments.

• Interest rate entered higher
• Monthly rent still competitive

High rates can keep renting attractive longer, even when the home price itself seems reasonable.

Frequently asked questions

Important note

This is only an estimate and not financial, lending, tax, or legal advice. It does not model every ownership outcome, financing detail, or resale scenario.