Rent vs. Buy Calculator
Compare renting with buying over the years you expect to stay. Buying includes your down payment, mortgage, taxes, insurance, maintenance and selling costs, less the equity you keep when you sell.
Buying
Example rate, not a quote
Renting
Buying could come out ahead by
$18,899
Over 7 years, after selling the home. Buying pulls ahead in year 6.
- Cost of renting (7 years)$231,134
- Net cost of buying (7 years)$212,235
- Down payment and closing costs$58,500
- Mortgage, taxes, insurance, HOA$273,305
- Maintenance$34,481
- Less equity when you sell-$154,051
- Break-even
- Year 6
- Equity at sale
- $154,051
Buying costs and assumptions
Percent of the price
Until you reach 20% equity
Percent of the home's value
Agent fees and closing costs
Only if you itemize deductions; otherwise 0
Disclaimer: These calculators are for educational and comparison purposes only. The interest rates and other values shown are hypothetical examples, not current rates, an advertisement of available terms, an offer of credit, a pre-qualification or pre-approval, or a commitment to lend. Payments shown are estimates of principal and interest plus any taxes, insurance, HOA dues and mortgage insurance you enter; they don’t include every cost of a loan, and the annual percentage rate (APR), which reflects the cost of credit including certain fees, may be higher than the interest rate. Your actual rate, APR, payment and terms depend on your credit, income, assets, loan amount, down payment, property type, occupancy, location and other factors, and are subject to underwriting approval. Rates, fees, taxes, insurance and other costs change without notice. VA funding fees are estimated from the U.S. Department of Veterans Affairs’ published schedule and depend on your eligibility; Federal First Lending LLC is not affiliated with or acting on behalf of the VA or any government agency. Rent vs. buy, DSCR and fix & flip results are not a guarantee of rent, property value, profit or return, and are not tax, legal or investment advice. DSCR and fix & flip loans are business-purpose loans for investment properties. Federal First Lending LLC, NMLS #2381991. Equal Housing Opportunity.
Common questions
Why does how long I stay matter so much?
Buying has upfront and selling costs that take time to recover through equity and appreciation. Over a short stay renting often costs less; over a longer one buying often pulls ahead.
Does it include tax savings?
Only if you enter an income tax bracket. Many homeowners take the standard deduction, in which case leave it at 0. This isn’t tax advice.
What isn’t included?
It doesn’t count what your down payment could earn if invested elsewhere, and it keeps taxes, insurance and HOA dues flat over time.