Rent vs. Buy Calculator
Should you rent or buy? Compare the real net cost of each over the years you plan to stay — weighing payments, equity, appreciation, rent growth, and the return on money a renter keeps invested.
A simplified estimate using fixed assumptions (30-yr term, ~1.1% property tax, ~1% upkeep, ~2% buy/sell costs); it ignores tax deductions, PMI, and exact local costs. Educational only — not financial advice.
How this is calculated
We compare the net cost of each choice over the years you plan to stay, then show which is lower.
net cost of buying = down payment + buying closing costs + all payments − end equity
Payments are principal & interest (standard amortization) plus property tax and upkeep. End equity is the appreciated home value minus the remaining loan balance and selling costs.
net cost of renting = rent paid (growing each year) − investment gains on the cash a renter keeps invested
Fixed assumptions to keep it simple: 30-year loan term, ~1.1% annual property tax, ~1% annual upkeep, ~2% buying closing costs, and ~2% selling costs. It ignores tax deductions, PMI, and exact local costs, so treat the result as directional, not exact.
This is an automated estimate, not legal, financial, or appraisal advice. Consult a licensed professional for matters affecting your specific situation.
Common questions
Is it cheaper to rent or buy?
It depends on how long you stay, your purchase price vs. rent, the rate, and how fast home values and rents change. Buying usually wins the longer you stay (you build equity); renting can win over short horizons. Our calculator compares the net cost both ways.
How does the calculator decide?
It totals the net cost of buying (upfront + payments minus the equity you'd recover from appreciation, less the remaining loan and selling costs) and the net cost of renting (rent paid minus the investment gains on the cash you'd keep invested), then shows which is lower over your holding period.
What does it leave out?
To stay simple it uses fixed assumptions (30-year term, ~1.1% property tax, ~1% upkeep, ~2% buy/sell costs) and ignores tax deductions, PMI, and exact local costs. Treat it as a directional estimate, not financial advice.
A simplified educational estimate using fixed assumptions and figures you enter — not financial advice. Many factors (tax treatment, PMI, maintenance, local costs, market changes) affect the real answer. Consult a licensed professional for your situation. LMH Venture Group LLC d/b/a ListMyHomes.com™ is a licensed Tennessee real estate firm acting only as a neutral facilitator.