Rent vs. Buy Calculator
Renting and buying are hard to compare because the costs arrive in different shapes: rent rises steadily, while ownership front-loads cash and builds equity slowly. This calculator models both over your time horizon and shows where they cross.
Buying breaks even in year 10
$7,665 lower net cost by year 10
Net cost of owning assumes you sell at the end of the period and pay ~6% selling costs.
- Estimated monthly rental costYear one, before increases.
- $2,818
- Estimated monthly ownership costLoan, taxes, insurance, upkeep.
- $4,558
- Upfront cost of renting
- $5,600
- Upfront cost of buying$130,000 down + $19,500 closing.
- $149,500
- Total paid renting (10 yrs)
- $343,760
- Total paid owning (10 yrs)
- $716,392
- Equity at the end of the period
- $432,710
- Net cost of owning after equity
- $336,095
- Break-even point
- Year 10
Breakdown
Cumulative comparison by year
| Period | Cumulative rent | Cumulative owning | Equity | Net cost of owning |
|---|---|---|---|---|
| Year 1 | $39,416 | $204,191 | $155,312 | $89,049 |
| Year 2 | $73,232 | $259,292 | $181,599 | $119,068 |
| Year 3 | $107,048 | $314,814 | $208,903 | $148,527 |
| Year 4 | $140,864 | $370,771 | $237,271 | $177,395 |
| Year 5 | $174,680 | $427,175 | $266,751 | $205,636 |
| Year 6 | $208,496 | $484,040 | $297,394 | $233,214 |
| Year 7 | $242,312 | $541,380 | $329,254 | $260,091 |
| Year 8 | $276,128 | $599,209 | $362,386 | $286,227 |
| Year 9 | $309,944 | $657,541 | $396,850 | $311,577 |
| Year 10 | $343,760 | $716,392 | $432,710 | $336,095 |
What this means
Renting starts at $2,818 per month and grows 4.0% per year; owning starts at $4,558 per month and requires $149,500 upfront.
Under these assumptions, the cumulative net cost of owning drops below renting in year 10. Before that point, renting is the cheaper option on cash terms.
This model is sensitive to appreciation, rent growth, and how long you stay. It does not account for tax deductions, investment returns on the cash you would otherwise invest, or the non-financial reasons people rent or buy. Use it to understand the trade-off, not to be told what to do.
How this calculation works
- Rental costs grow at your expected annual rent increase and include renters insurance and other recurring costs.
- Ownership costs include principal, interest, taxes, insurance, HOA, and maintenance, with upfront down payment and closing costs.
- Net cost of owning subtracts equity built and estimated appreciation, and adds an estimated selling cost at the end of the horizon.
- The break-even year is the first year where the cumulative net cost of owning falls below the cumulative cost of renting.
All results are estimates based on the assumptions you enter. RE View does not provide financial, tax, or lending advice.
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Related guides
- Renting vs. Buying
The real trade-offs, and the variables that actually decide the outcome.
- When Does Buying Become Cheaper Than Renting?
How break-even works and what pushes it earlier or later.
- What Costs More: Renting or Owning?
A category-by-category cost comparison of the two housing paths.