Rent vs Buy — Free Online Calculator
Compare options. Free rent vs buy with instant results.
Last updated: 2026-06-01
Analysis includes: Mortgage costs, property taxes, maintenance, opportunity cost of down payment, home appreciation, and rent increases.
Compare Options
Buy Details
$
4.00 Lakh
$
80.00 Thousand
20.0% of home price
%
Rent Details
$
2.00 Thousand
1 year15 years30 years
Assumptions
Home Appreciation
3%
Investment Return
7%
Our Recommendation
Renting is Better
You could save $67,061 by renting over 7 years
BUY
Monthly Cost$3,137
Total Cost (7yr)$362,703
Equity Built+$167,475
RENT
Monthly Cost$2,000
Total Cost (7yr)$183,899
Investment Growth+$67,732
Break-even Point: More than 7 years (buying doesn't pay off in your timeframe)
Net cost comparison over time (lower is better). Net cost = Total paid - Equity/Investment value.
- Buy (Net Cost)
- Rent (Net Cost)
| Year | Buy Total | Rent Total | Home Value | Equity | Winner |
|---|---|---|---|---|---|
| 1 | $129,650 | $24,000 | $412,000 | $94,850 | Rent |
| 2 | $167,624 | $48,720 | $424,360 | $110,273 | Rent |
| 3 | $205,931 | $74,182 | $437,091 | $126,298 | Rent |
| 4 | $244,583 | $100,407 | $450,204 | $142,951 | Rent |
| 5 | $283,588 | $127,419 | $463,710 | $160,263 | Rent |
| 6 | $322,958 | $155,242 | $477,621 | $178,265 | Rent |
| 7 | $362,703 | $183,899 | $491,950 | $196,992 | Rent |
Important Considerations
This Calculator Doesn't Include:
- Tax deductions for mortgage interest
- Capital gains tax on home sale
- Emotional and lifestyle factors
- Local market conditions
Results Depend Heavily On:
- How long you actually stay
- Actual home appreciation rate
- Investment returns (opportunity cost)
- Changes in rent over time
Made Your Decision?
Use our other calculators to plan your next steps.
Data sources
Rates and thresholds on this page are based on official publications. Verify against the source for your specific circumstances.
- Consumer Financial Protection Bureau (CFPB) — verified 2026-06-01 · Mortgage payment and PITI guidance
Planning estimates only. Local taxes, maintenance, and appreciation vary. Not financial or legal advice.