Rent vs Buy Calculator

Comparing rent to a mortgage payment is not a fair fight. Owning adds maintenance, taxes and transaction costs; renting has none of those but builds no equity and rises over time.

This model runs both forward over your time horizon and reports the net position — what you'd have either way when you walk out the door.

Your numbers

$1,750
$325,000

Your results

Buying comes out ahead by

$6,110

Over 7 years

Total rent paid
$163,368
Total cost of owning (net of equity)
$157,258
Home value after 7 years
$399,709
Equity at sale (after 7% selling costs)
$92,569
Owning payment today
$2,510
Rent in year 7
$2,226

What happens if you change this

Staying 7 years, buying comes out ahead by $6,110. Owning costs more month to month at the start, but rent grows 3.5% a year — by year 7 you'd be paying $2,226 while the mortgage principal and interest stays fixed at $1,952. Shorten your time horizon and buying loses, because the roughly $22,750 in selling costs hasn't been outrun by equity yet. Drag the years slider to find your crossover point.

Ready for real numbers?

Estimates get you oriented. A pre-approval gets you an offer sellers take seriously.

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Questions people ask

What time horizon makes buying worth it?
Commonly somewhere between three and six years, but it's entirely dependent on your rent, price, rate and appreciation. Slide the years input to find where the lines cross for your numbers.
Why include selling costs?
Because you'll pay them. Commissions, transfer tax and settlement fees typically run 6–8% of the sale price, and ignoring them makes buying look far better than it is on a short hold.

Estimates for education only — not a loan approval, rate quote, or commitment to lend. Actual figures depend on credit, property, program guidelines, and market conditions at the time of lock. Corie Adams · NMLS #1875205 · Network Funding, LP · NMLS ID #2279 · Equal Housing Opportunity.