How the comparison works
- Total rent — your rent summed across the years you'll stay, growing each year by the rent-increase rate.
- Net cost to buy — the down payment, the mortgage payments you make, and yearly ownership costs (property tax, maintenance, insurance), minus the equity you'd recover by selling at the end.
- The verdict — whichever total is lower over your holding period, and by how much.
What you enter
- The home — price, down-payment percentage, loan rate, and loan term set the mortgage and the cash you put in up front.
- The rental — current monthly rent and the yearly rent-increase rate you expect.
- Your assumptions — how many years you'll stay, how fast the home appreciates, and yearly ownership costs as a percentage of the home's value.
Because the result hinges on these estimates, it's worth trying a few scenarios — a slower appreciation rate or a shorter stay can flip the verdict.
Frequently asked questions
What does “net cost to buy” mean?
It's everything you spend to own the home over the period, reduced by the equity you'd walk away with if you sold — the home's appreciated value less any remaining loan balance.
Why does “years you’ll stay” change the answer so much?
Buying has big upfront costs (down payment, fees). The longer you stay, the more those spread out and the more the home can appreciate, which usually tips the balance toward buying.
Which numbers should I be most careful about?
Home appreciation and the rent-increase rate. Small changes to either compound over the years and can swing the verdict, so use realistic, conservative figures rather than best-case ones.
What doesn’t the model include?
It's deliberately simple. It doesn't model selling/transaction costs, capital-gains tax, or the return you might earn by investing the down payment instead — so treat it as a guide, not advice.
Is renting just throwing money away?
Not necessarily. Renting stays flexible and avoids maintenance, taxes, and transaction costs. Over a short stay, or when a home appreciates slowly, renting can genuinely come out ahead — which is exactly what this tool helps you check.
Is my information uploaded?
No. The calculation runs entirely in your browser. Nothing you enter is stored or sent to a server.