Rent versus buy calculator
Am I better off renting for now?
Renting is not throwing money away and buying is not automatically the smart move. Which one wins depends on how long you stay, what rents do, and how much the house appreciates.
Rent versus buy calculator
After the period you chose
Renting wins
by about $14,359 over 5 years
- Total rent paid
- $125,482
- Total spent on owning
- $206,586
- Equity after selling costs
- $71,291
- Selling costs at the end
- $30,431
- Net cost of buying
- $139,841
Over 5 years, renting costs about $14,359 less. Closing and selling costs need time to earn back. Buying pulls ahead in year 7; try a longer stay.
Read the buyer guide- Owning, first-year monthly
- $2,955$2,223 principal and interest, plus tax and upkeep
- Rent, first year monthly
- $1,950Rising 3.5% a year
- Break-even year
- Year 7When buying's net cost drops below renting
- Home value after 5 years
- $434,728At 3% a year
- Loan balance after 5 years
- $333,006$23,244 of principal paid down
- Interest paid
- $110,108Over 5 years
- Buying and selling costs
- $39,806Closing costs plus the sale
- Return given up on cash
- $4,545At 3% a year
Renting against buying, year by year
Total rent paid, against what owning really costs once you sell: every payment and cost, minus the equity you walk away with.
- Renting, total cost
- Buying, net cost after equity
View as a table
| Year | Renting | Buying, net | Difference |
|---|---|---|---|
| Year 1 | $23,400 | $57,401 | -$34,001 |
| Year 2 | $47,619 | $78,734 | -$31,115 |
| Year 3 | $72,686 | $99,602 | -$26,916 |
| Year 4 | $98,630 | $119,979 | -$21,349 |
| Year 5 | $125,482 | $139,841 | -$14,359 |
| Year 6 | $153,274 | $159,160 | -$5,886 |
| Year 7 | $182,038 | $177,908 | +$4,130 |
| Year 8 | $211,809 | $196,055 | +$15,754 |
| Year 9 | $242,623 | $213,569 | +$29,054 |
| Year 10 | $274,515 | $230,416 | +$44,099 |
| Year 11 | $307,523 | $246,559 | +$60,963 |
| Year 12 | $341,686 | $261,962 | +$79,724 |
| Year 13 | $377,045 | $276,583 | +$100,462 |
| Year 14 | $413,641 | $290,380 | +$123,261 |
| Year 15 | $451,519 | $303,309 | +$148,210 |
Estimates only. Buying assumes a 30-year fixed loan amortized month by month, property tax on the home's value, your upkeep figure, buying costs at closing and selling costs at the end. Renting counts rent only. The investment return is what the down payment and buying costs could have earned instead. Tax effects are not included.
Estimates only. Results depend on the assumptions you enter and are not a quote, a rate lock or an offer to lend.
How to read the result
This compares total cost over a period you choose, counting the equity you build and the appreciation you capture on the buying side, against rent increases on the other.
Time horizon decides it
Buying rarely wins over two years because closing costs and selling costs eat the gains. Over seven it usually does.
Equity is not free money
The equity you build in year one is mostly your down payment, not your payments. Amortization is slow early on.
Include the costs renters do not have
Maintenance, HOA dues and the higher insurance premium on an owned home all belong in the comparison.
About this calculator
Metro Atlanta rents have historically moved in a 3% to 5% annual range over long periods. We default to 3.5%, which is a moderate planning assumption.
We default to 3% annually. Atlanta has had periods well above and well below that. Do not build a decision around an optimistic number.
No. Mortgage interest deductibility depends on whether you itemize, which most households no longer do. Ask your CPA rather than assuming a benefit.
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