Rent vs. Buy Calculator - Rental Flow
Landlord Calculator

Rent vs. Buy Calculator

Compare the real cost of renting against buying over the years you plan to hold, including the equity and appreciation you recover when you sell.

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Opens live in the Rental Flow app, no account needed.

What this calculator does

Buying isn't automatically cheaper than renting, and renting isn't automatically throwing money away. This calculator totals what you'd spend on each path over a holding period, then credits the buyer back the equity built from paying down the loan plus any appreciation, so you compare the true net cost, not just the sticker prices.

How it works

Net cost to buy = Down payment + Mortgage paid + Ownership costs − Equity recovered at sale

The renting side grows your rent each year by the increase you set. The buying side adds the down payment, every mortgage payment, and ongoing ownership costs (taxes, insurance, upkeep), then subtracts the home's appreciated value minus the remaining loan balance at the end of the period.

Worked example

$1,800/mo rent vs. a $300,000 home, held 7 years

Monthly rent (growing 3%/yr)$1,800
Purchase price$300,000
Down payment$60,000
Loan: 6.5%, 30 years$240,000
Monthly ownership costs$650
Appreciation3% / year
Total cost to rent (7 yrs)~$165,500
Net cost to buy (7 yrs)~$90,100
Buying saves~$75,400

The outcome flips with your assumptions: a shorter holding period, flat appreciation, or higher ownership costs can swing it back toward renting. Run your own numbers to see where your break-even lands.

Is it better to rent or buy?

Whether renting or buying wins depends on how long you stay, local prices and rents, your mortgage rate, and what home values do over time. Buying carries large upfront and ownership costs that take years to recoup, so the longer you stay, the more buying tends to favor you.

This calculator compares the total cost of renting against the net cost of buying over your expected holding period, including appreciation and ownership costs. There is no universal answer; the right choice is the one the numbers, and your plans, support for your situation.

Try it with your own numbers →

Frequently asked questions

It varies, but buying often takes several years to beat renting because of the upfront costs of purchasing and selling. The shorter your expected stay, the more renting tends to win. This calculator lets you test different holding periods to find your break-even.
Ownership adds property taxes, insurance, maintenance, and often HOA dues, plus large one-time costs to buy and later sell. These ownership costs are why a low monthly mortgage does not automatically make buying cheaper than renting over a short horizon.
Home appreciation builds equity and can tip the math toward buying, but it is uncertain. Because it can be a large part of the buying case, test the decision with a conservative appreciation rate and make sure buying still holds up if values stay flat.
Not necessarily. Renting avoids maintenance, transaction costs, and the risk of falling home values, and frees up capital you could invest elsewhere. Whether renting or buying is smarter depends on your timeline, local costs, and what you do with the money you save.