Rent vs Buy Calculator

How to use this calculator

Enter the home price, down payment, and loan terms, plus taxes, upkeep, and expected appreciation. Then your rent, its annual increase, and the return you’d earn investing the down payment instead. Set how long you’ll stay, and the calculator shows which path costs less and by how much.

What the metrics mean

• Net cost to buy — down payment, mortgage, and carrying costs, minus the equity you end with.
• Net cost to rent — total rent paid, minus what your down payment could earn invested.
• Ending equity — the home’s appreciated value minus the loan balance and selling costs.
• Time horizon — how long you plan to stay — the biggest driver of the answer.

Frequently asked questions

How does a rent vs buy calculator work?

It compares the net cost of each path over your time horizon. Buying nets your total payments and costs against the equity you build; renting nets total rent against what your down payment could earn if invested instead.

When does buying beat renting?

Buying usually wins the longer you stay, because equity from paydown and appreciation outgrows the upfront and selling costs. Short horizons often favor renting since transaction costs dominate.

What does this calculator leave out?

For simplicity it excludes closing costs to buy, mortgage insurance, and tax deductions, and it assumes you invest the down payment if you rent. It is a directional comparison, not tax advice.

Why include selling costs?

Because to realize a home’s value you usually sell, and that costs roughly 6–8% in commissions and fees. Ignoring it overstates the case for buying, especially over short horizons.

Deciding between a primary home and an investment? dre1mery.com models buy-versus-rent and full underwriting on any property automatically.