Calculators
Rent vs. Buy Calculator
Results are estimates only. See the disclosure below the results.
Rent vs. buy comparison
Compare a monthly homeownership cost with rent. Rent is modeled with a 2% average annual increase. This does not include tax benefits, maintenance, or opportunity cost.
Monthly buy cost
$2,623
Estimated APR
6.539% Estimated APR
Estimated APR is provided for informational purposes only. Actual APR may vary based on lender terms, fees, credit profile, and other factors.
Difference vs. rent today: $423 higher
Amount financed: $318,705 · Loan term: 30 years
- Rent in year 5 (at 2%/yr)
- $2,381
- Rent in year 10 (at 2%/yr)
- $2,629
- Buy cost (fixed P&I)
- $2,623
Estimated APR
6.539%
Interest rate: 6.500%
Prepaid finance charges: $1,295.00
Amount financed: $318,705.00
The Annual Percentage Rate (APR) shown is an illustrative estimate for educational purposes only. It is calculated from the figures you enter and assumes the loan is held to full term with no changes. It is not a quote, offer, commitment to lend, or an advertisement of specific credit terms. Actual APR depends on the final loan amount, interest rate, term, and the finance charges that apply to your transaction, and will be disclosed on your Loan Estimate and Closing Disclosure. Third-party costs that are not finance charges (such as appraisal, title services you shop for, recording fees, taxes, and homeowners insurance) are excluded from APR. Rates, fees, and terms are subject to change and to credit approval; not all applicants will qualify.
Projection
How Net Worth May Change Over Time
Equity begins with your down payment, then grows two quiet ways: the loan balance falls each month, and the property may appreciate. Renting assumes a 2% average annual increase. Every figure here is an estimate.
Net advantage vs. renting answers a single question: after selling the home at the end of the period and accounting for every dollar spent on both sides — closing costs, the monthly gap between owning and renting, and selling costs — would you be financially ahead of, or behind, having rented instead? It can start negative in the early years and turn positive as equity builds.
Tap or drag across the chart to read any year.
After 10 years
$445,055
Equity
Estimated home value
$716,339
Appreciation gain
$316,339
Amortization gain
$48,716
Cashflow difference vs. rent
-$43,041
Rent modeled at 2% average annual increase.
Cost to sell
-$42,980
Net advantage vs. renting
$267,034
Appreciation + principal paid, minus upfront closing costs, the cumulative monthly gap between owning and renting, and selling costs. A positive value means buying left you ahead; negative means renting would have cost less over the same period. Excludes tax effects.
Adjust the projection
How This Calculator Works
Comparing Renting and Buying Over Time
This tool projects the net position of buying compared with renting, based on the appreciation, rent growth, and cost assumptions you choose.
What the inputs mean
Rent and expected rent growth describe the renting path. Home price, down payment, rate, taxes, insurance, and expected appreciation describe the buying path. Every assumption is editable because nobody knows future prices or rents.
How to read the results
Net position versus renting estimates the difference in wealth between the two paths at the year you select, counting equity built and costs paid. Try conservative appreciation assumptions as well as optimistic ones. Estimated APR folds lender fees, discount points, and other prepaid finance charges into a single yearly cost figure, so it is usually a little higher than the note rate. Use it to compare scenarios, not as a quoted rate.