Estimates the long-term cost of renting versus buying a home.
The rent-vs-buy calculator compares the total financial cost of renting versus buying a home over N years, accounting for mortgage payments, equity build-up, opportunity cost of the down payment, and rent increases.
Buy total cost = Mortgage payments + Maintenance + Insurance + Property tax − Equity gained − Home appreciation Rent total cost = Monthly rent × 12 × years × rent escalation factor − Investment return on down payment Break-even year: when cumulative buying cost < cumulative renting cost
Home $400,000, down payment $80,000 (20%), mortgage 6% / 30 yr. Monthly mortgage ≈ $1,918. Rent equivalent $1,500/mo (4% annual increase). Down payment invested at 7%/yr. Break-even ≈ year 8.
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