Rent vs buy calculator
Compare the real cost of renting and owning over the years you expect to stay, including equity, appreciation and selling costs.
Over 7 years
Buying saves $16,357
- Monthly mortgage (P&I)
- $3,555
- Buying pulls ahead
- Year 7
- Equity when you sell
- $233,895after selling costs
- Home value then
- $799,418
Estimates only. Renting includes $180 a year of renters insurance. Buying counts the down payment, buying costs, mortgage payments, PMI, tax, insurance and maintenance, minus the equity left after selling costs. Tax deductions and investment returns on the down payment are left out.
Where the lines cross, owning becomes the cheaper choice. The thin vertical line marks the years you plan to stay.
- Renting (rent paid to date)
- Buying (net cost to date)
Show the data as a table
| Year | Rent paid to date | Net cost of buying | Equity if sold | Home value |
|---|---|---|---|---|
| Year 1 | $38,580 | $87,506 | $58,043 | $669,500 |
| Year 2 | $78,696 | $122,479 | $84,584 | $689,585 |
| Year 3 | $120,409 | $156,887 | $112,167 | $710,273 |
| Year 4 | $163,784 | $190,699 | $140,839 | $731,581 |
| Year 5 | $208,887 | $223,879 | $170,650 | $753,528 |
| Year 6 | $255,786 | $256,392 | $201,650 | $776,134 |
| Year 7 | $304,555 | $288,198 | $233,895 | $799,418 |
| Year 8 | $355,266 | $319,257 | $267,442 | $823,401 |
| Year 9 | $407,999 | $348,794 | $302,350 | $848,103 |
| Year 10 | $462,835 | $375,300 | $338,682 | $873,546 |
| Year 11 | $519,856 | $400,921 | $376,506 | $899,752 |
| Year 12 | $579,151 | $425,604 | $415,892 | $926,745 |
| Year 13 | $640,811 | $449,294 | $456,912 | $954,547 |
| Year 14 | $704,929 | $471,933 | $499,646 | $983,183 |
| Year 15 | $771,606 | $493,460 | $544,173 | $1,012,679 |
| Year 16 | $840,942 | $513,808 | $590,581 | $1,043,059 |
| Year 17 | $913,044 | $532,907 | $638,961 | $1,074,351 |
| Year 18 | $988,024 | $550,685 | $689,407 | $1,106,581 |
| Year 19 | $1,065,995 | $567,062 | $742,021 | $1,139,779 |
| Year 20 | $1,147,078 | $581,955 | $796,909 | $1,173,972 |
| Year 21 | $1,231,397 | $595,276 | $854,183 | $1,209,191 |
| Year 22 | $1,319,082 | $606,931 | $913,960 | $1,245,467 |
| Year 23 | $1,410,267 | $616,821 | $976,367 | $1,282,831 |
| Year 24 | $1,505,092 | $624,839 | $1,041,534 | $1,321,316 |
| Year 25 | $1,603,703 | $630,875 | $1,109,600 | $1,360,956 |
| Year 26 | $1,706,251 | $634,809 | $1,180,711 | $1,401,784 |
| Year 27 | $1,812,894 | $636,514 | $1,255,022 | $1,443,838 |
| Year 28 | $1,923,795 | $635,857 | $1,332,697 | $1,487,153 |
| Year 29 | $2,039,125 | $632,696 | $1,413,907 | $1,531,768 |
| Year 30 | $2,159,062 | $626,879 | $1,498,835 | $1,577,721 |
Figures are estimates for illustration only. Appreciation is never guaranteed; try a few rates, including zero. Every rate and payment on this site is a sample figure.
How the comparison works
Every number above is an estimate. A loan officer can replace assumptions with your actual taxes, insurance quotes and pricing.
Talk to a loan officerCost of renting
Total rent paid over the period, rising each year by your rent increase rate, plus renters insurance.
Cost of buying
Mortgage payments, property tax, insurance and maintenance, plus closing costs to buy and about 5% to sell, minus the equity you walk away with.
Equity
Your down payment, the principal you pay down and any appreciation. Appreciation is never guaranteed, so try a few rates, including zero.
Break-even year
The first year in which owning costs less in total than renting. In Greater Boston it is often between year four and year seven.
Common questions
No. Many households take the standard deduction, so we leave mortgage interest deductions out to keep the estimate conservative.
That opportunity cost matters. A simple way to account for it is to lower the appreciation rate by a point or two.
We assume 1% of the home's value per year. Older Boston-area homes and multi-families can run higher.
Turn estimates into real numbers
Get a pre-approval with your actual rate, taxes and cash to close. Soft credit check, and a local loan officer follows up the same day.
- Soft credit check
- 24-day average close
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