Rent vs Buy Calculator
Compare the long-term cost of renting vs buying a home and find the break-even year.
Last updated: 2026-06-03
Inputs
Formula transparency
Source: defaultnetBuy = down + Σmortgage + Σupkeep − (equity − selling costs); vs Σrent
How to use it
- Enter your rent and expected annual increase.
- Enter the home price, down payment, mortgage rate, and term.
- Adjust maintenance, appreciation, and selling costs in advanced mode.
Example
- Over 7 years, a high rent often makes buying cheaper once equity is counted; a short stay favors renting.
What the result means
Net buying cost is total cash out minus the equity you'd recover; break-even is the year buying becomes cheaper.
Common mistakes
- Comparing rent to the installment only, ignoring maintenance and equity.
- Using an optimistic appreciation rate.
Limitations
- Very sensitive to rent growth and appreciation.
- Not real-estate, tax, or investment advice.
Frequently asked
- How is net buying cost computed?
- Total you pay minus recovered equity (home value − remaining loan) after selling costs.
- What is the break-even year?
- The first year buying becomes cheaper than renting cumulatively.
- Inflation?
- Values are nominal; control rent growth and appreciation manually.
- Default assumptions?
- 2% appreciation, 1% maintenance, 3% selling costs — all editable.
- Is this real-estate advice?
- No — an educational estimate. The decision depends on many personal factors.
Related calculators
- Mortgage Calculator
Enter property price, down payment, and loan term to get your monthly installment, total repayment, and debt burden ratio — tailored for MENA real estate financing.
- Rent Affordability Calculator
Enter your monthly income and commitments to find the rent range you can comfortably afford without straining your budget — completely free.
- Down Payment Calculator
Enter your property or car price and down payment percentage to see the required amount, remaining loan, and the gap between your savings and what's needed.
- Monthly Budget Calculator
Track your income against expenses and see your monthly surplus or deficit at a glance. A free budgeting tool that shows exactly where your money goes — no sign-up required.
Results are estimates and not professional advice. Verify important decisions with a qualified professional.