Rent vs Buy Calculator
Should you buy a home or keep renting? Enter your numbers — see which option makes you richer.
Try a scenario
How to Use This Calculator
Should I Buy? tab
The default tab. Enter your current monthly rent, the home price you're considering, down payment %, and mortgage rate. The calculator compares total costs of buying vs renting over your chosen time horizon, including equity built, closing costs, PMI, property tax, insurance, and maintenance. Expand "More options" to adjust rent increases, appreciation, property tax rate, insurance, maintenance, years to compare, tax bracket, and filing status.
Am I Overpaying? tab
Enter your monthly rent and the home price for an equivalent property. The calculator shows the price-to-rent ratio — the standard benchmark for whether renting or buying is cheaper in your market. It also computes the true monthly cost of owning (PITI + maintenance + opportunity cost of down payment) and compares it side-by-side with your rent.
Invest the Difference tab
What if you kept renting and invested the savings? Enter your monthly rent, monthly ownership cost, down payment amount, and expected investment return. The calculator shows what your portfolio would grow to vs. the equity a buyer would build — after capital gains tax.
Share your result
Every input is encoded in the URL. Click Share, send the link to your partner or advisor — they'll open it and see your exact scenario. No re-entering, no screenshots.
The Formula
Price-to-rent ratio
Below 12: buying is usually cheaper. 12–18: neutral. Above 18: renting wins. The national US average is about 15.5.
Total cost comparison
Total Rent Cost = Cumulative Rent (with annual increases) + Renter’s Insurance
The "Should I Buy?" tab computes both over your chosen horizon and finds the break-even year where buying starts to win.
Invest the difference
Net Equity = Home Value × (1+appreciation)^N − Remaining Mortgage
Compares the renter's investment portfolio against the buyer's home equity after N years.
Example
Lisa — Denver, CO
Lisa pays $2,000/month rent. She's considering a $400,000 condo with 20% down at 6.65%.
Should I Buy? tab
Buying wins after year 4. But Lisa plans to move in 3 years — she ran a 3-year horizon and renting won. She decided to keep renting and invest the difference.
Invest the Difference tab
Lisa invested her $80,000 down payment in an index fund. With $1,000/month additional savings (the difference between owning cost and rent), her projected portfolio after 10 years at 7%: $330,000 (after capital gains tax). She shared the link with her financial advisor.
Market Benchmark: Price-to-Rent Ratios
| City | Price-to-Rent | Verdict |
|---|---|---|
| Detroit | 8 | Buy-favored |
| Cleveland | 9 | Buy-favored |
| Pittsburgh | 10 | Buy-favored |
| Memphis | 11 | Buy-favored |
| Dallas | 14 | Neutral |
| US Average | 15.5 | Neutral |
| Denver | 17 | Neutral |
| Seattle | 22 | Rent-favored |
| Los Angeles | 25 | Rent-favored |
| New York City | 28 | Rent-favored |
| San Francisco | 32 | Rent-favored |
Approximate ratios based on Zillow, OECD, and Census Bureau data. Your actual ratio depends on specific neighborhood and property type.