What the calculator compares
The rent vs buy calculator keeps two running totals for each year you plan to stay. Renting is the rent you pay, rising each year by the rent growth rate you choose. Buying starts with the down payment and closing costs, then adds mortgage payments, property tax, home insurance and maintenance, plus the return your up-front cash could have earned if it had been invested instead. At the end of each year it subtracts what you would net from selling: the home value minus selling costs and the remaining loan balance.
The first year in which buying comes out cheaper is the break-even year. If you expect to move before then, renting is likely to cost less. The model leaves out tax deductions, PMI, HOA fees and moving costs, so treat the result as a test of your assumptions.
About these calculators
Everything runs locally in your browser. Housing outcomes depend heavily on prices, rates and how long you stay, so we encourage you to try several assumptions.
Results are illustrations, not predictions or financial advice. Speak to a lender or independent adviser before a major purchase.