Getting Started
Rent vs. Buy Calculator
Should you rent or buy? The answer depends on how long you'll stay, home appreciation, and the costs on each side. This calculator compares the true net cost of buying vs. renting — including equity, selling costs, and rent increases — year by year.
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Realtor commissions, etc.
What a renter could earn on the down payment
Buying wins
by $46,341.73
Break-even at year 4
Net cost of buying (7 yr)
$130,672.73
Net cost of renting (7 yr)
$177,014.46
Year-by-year net cost
| Year | Buy net | Rent net |
|---|---|---|
| 1 | $52,255.77 | $23,200.00 |
| 2 | $67,672.49 | $47,064.00 |
| 3 | $82,209.55 | $71,610.64 |
| 4 ◆ | $95,824.24 | $96,859.07 |
| 5 | $108,471.61 | $122,828.95 |
| 6 | $120,104.38 | $149,540.50 |
| 7 | $130,672.73 | $177,014.46 |
How this is calculated
- Buying net cost includes down payment, closing costs, and all monthly carrying costs minus equity recovered at sale.
- Equity = sale price (appreciated) − selling costs − remaining loan balance.
- Renting net cost includes escalated rent minus returns a renter could earn investing the down payment.
- PMI is estimated when the initial down payment is under 20%. It ends at 78% of original value on the scheduled balance; earlier cancellation is not assumed.
- Taxes, insurance and maintenance are held constant. Mortgage payments stop at payoff. The renter invests only the down payment; investment of closing costs and monthly cash-flow differences is not modeled.
- Break-even year is the first year buying becomes cheaper than renting on a net-cost basis.
Important disclaimer
The figures produced by this calculator are estimates provided for informational and educational purposes only. They are not a commitment to lend, a loan estimate, or a guarantee of any terms, rate, or approval.
Actual costs depend on many factors the tool cannot fully account for, including your specific loan program, the property's location and type, your credit profile, debt-to-income ratio, income documentation, current market interest rates, mortgage insurance requirements, taxes, and insurance premiums.
Interest rates, fees, and program guidelines change frequently. For an accurate quote tailored to your situation, connect with a One Eleven Mortgage loan officer who can review your complete financial picture and provide live, personalized numbers.
Next Step
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Founder & CEO
Kahren can turn these estimates into a real plan with live rates and program options.