Rent vs Buy Calculator
This free rent vs buy calculator compares your rent with what a mortgage payment would really cost each month, including taxes, insurance, HOA and PMI. Nothing you enter is saved.
Your numbers
Often required when the down payment is under 20%.
Your estimate
Enter a home price to compare it with your rent.
How to use the rent vs buy calculator
- Enter your monthly rent and the home price.
- Enter a down payment in dollars or as a percent of the price.
- Enter the interest rate your lender quoted, and choose a 15 or 30 year term.
- Add yearly property taxes, yearly home insurance, and any monthly HOA fees or PMI.
Results update right away. Nothing you enter is saved.
What a mortgage payment includes (PITI)
PITI stands for principal, interest, taxes, and insurance, the four parts of most mortgage payments. Some homes also have HOA fees, and loans with a small down payment often add PMI. This calculator includes all of them so you can compare the full monthly cost with your rent.
Hidden costs of owning a home
Your monthly payment is not the whole cost of owning. Plan for repairs, maintenance, utilities, and moving costs, and keep in mind that home values and rents change over time. Repairs especially can add up.
When renting makes more sense
Renting can make more sense if you may move in a few years, are still building savings, or would rather not cover repair bills yourself. Owning comes with costs a rent payment does not, like repairs, maintenance, and closing costs.
When buying makes more sense
Buying can fit when you expect to stay put, you can cover the down payment and still keep an emergency fund, and the full monthly cost sits comfortably next to your other bills. Paying down the loan builds equity. This comparison does not predict repairs or changes in home value.
Frequently asked questions
Is it cheaper to rent or buy?
It depends on your numbers. Compare the total monthly cost to own with your rent to see which one costs less each month. Keep in mind that the monthly number leaves out repairs, maintenance, and the cash due at closing.
How much should I put down?
A larger down payment means a smaller loan and a lower principal and interest payment. Many conventional loans add PMI when the down payment is under 20% of the home price. Enter dollars or a percent and the calculator uses that amount.
What is PMI?
Private mortgage insurance. Lenders often require it on conventional loans when the down payment is less than 20% of the home price. It is usually added to your monthly payment until you build enough equity.
Where do I find property tax and insurance numbers?
Home listings often show the yearly property tax. For insurance, a quick quote from an insurer gives you a realistic number. If you are not sure yet, use an estimate and adjust it later.
How much do I need saved before buying a home?
At least your down payment and closing costs, which often run 2% to 5% of the home price. It also helps to have an emergency fund left over after you move in.
How long should I plan to stay before buying makes sense?
There is no set number of years. A short stay can make renting the better fit once moving costs and cash at closing are counted. If you might move soon, use the monthly comparison and keep that cash in mind.
Is my information saved?
No. The numbers you enter stay in your browser and are not stored.
Not ready to buy? See how much rent you can afford.
Want to see where the rest of your pay goes? Try the budget calculator.
Paying off a car, student, or personal loan? Try the loan calculator.
Savenello shows where your money goes each month so you can see how much room you have for rent or a mortgage. Connect your bank securely with Plaid.