Rent vs Buy Calculator
True cost comparison of renting vs owning, including opportunity cost of the down payment.
Buying
= $80,000.00
Renting
General
Return on down payment if invested
Results over 10 years
Rent vs buy factors
Opportunity cost
The down payment invested in the stock market could grow significantly. This hidden cost of buying is often overlooked in simple comparisons.
Break-even point
Buying typically becomes more cost-effective after 5-7 years due to equity building and spread of closing costs. Shorter timelines often favor renting.
Price-to-rent ratio
Divide home price by annual rent. Above 20 generally favors renting. Below 15 generally favors buying. Your local market ratio matters enormously.
Non-financial factors
Stability, customization, community roots, and building equity matter beyond the numbers. The right answer depends on your life situation, not just math.
Estimates only. Does not include PMI, tax deductions, or capital gains taxes. Not financial advice.