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Borrowing

Rent vs buy calculator

Compare the long-term cost of renting and owning.

Preparing calculator…
Country / regionUnited States
Official sourceIRS / state revenue authority ↗
TRANSPARENT CALCULATION

Formula & method

Net ownership cost = down payment + mortgage payments + buying costs − estimated equity

This simplified comparison includes mortgage payments, estimated property equity, 2% buying costs and 2% annual rent growth. It excludes maintenance, taxes, selling costs and investment returns.

Assumptions

  • Inputs remain in your browser and are not saved.
  • Rates are converted to the payment frequency shown.
  • Results are rounded for display; internal calculations retain precision.
WORKED EXAMPLE

Example calculation

Example

A longer stay often improves buying economics because transaction costs are spread over more years.

Important

Educational estimates only — not financial, tax or legal advice.