Rent vs Buy Calculator
Compare renting against buying by pitting your monthly rent against the mortgage payment on a home. Free and fast.
- Buy monthly payment
- 1769.79
- Monthly difference
- -230.21
- Cheaper option
- Buy
How to use
- Enter your current monthly rent.
- Enter the home price, down payment, annual interest rate, and loan term in years.
- Read the estimated mortgage payment, the monthly difference, and which option is cheaper.
Examples
- $2,000 rent vs $350k home:
5% down, 6.5% / 30 yr → Buy ($1,769.79) - Down payment over price:
invalid input → error
FAQ
- How is the buy payment calculated?
- The mortgage payment is computed on the loan amount (home price minus down payment) using Payment = P·r·(1+r)^n / ((1+r)^n − 1), where r is the monthly rate and n is the number of months.
- Does this account for taxes, maintenance, and appreciation?
- No. This is a simplified principal-and-interest (P&I) comparison. It excludes property taxes, insurance, maintenance, HOA fees, closing costs, and home appreciation, so use it as a rough first pass rather than a complete buy-versus-rent decision.
- What does the monthly difference mean?
- It is the mortgage payment minus your rent. A negative number means buying costs less per month than renting; a positive number means renting is cheaper.