Rent vs Buy Calculator (Quick)
- Your rent
- $2,200.00
- Owning − renting
- $448.75
A simple monthly comparison between renting and the carrying cost of buying.
This is an educational estimate, not financial advice. Figures exclude taxes, fees, and individual circumstances. Verify with a licensed professional before making money decisions.
How to use this calculator
- Enter your current monthly rent.
- Enter the home price, down payment %, and mortgage rate.
- Read the estimated monthly cost to own versus your rent.
- Remember owning builds equity that renting does not.
Formula
-
P&I— mortgage principal and interest -
1.5%/yr— estimate for tax, insurance, and maintenance
Worked example
Renting at $2,200 vs. buying a $420,000 home with 20% down at 6.5%: owning costs about $2,649/month including an estimate for tax, insurance, and upkeep — roughly $449 more than renting, before counting equity built.
Frequently asked questions
Is owning always more than renting?
Monthly carrying cost is often higher, but buying builds equity and may appreciate, which renting does not.
What's in the carrying cost?
Mortgage principal and interest plus an estimate for property tax, insurance, and maintenance.
Does this include closing costs?
No — upfront costs and the opportunity cost of the down payment aren't modeled in this quick view.
When does buying win?
Generally the longer you stay, the more buying favors you, as upfront costs spread out and equity grows.
Should I rely on this alone?
No — it’s a starting point. A full rent-vs-buy analysis includes appreciation, taxes, and investment returns.