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Rent versus buy calculator
Compare simplified multi-year housing cash outflows for renting and buying.
On this page
Renting cash outflow151,200
Buying net cash outflow171,600
Buying minus renting20,400
Calculator controls
How to calculate
Compare simplified multi-year housing cash outflows for renting and buying.
Renting cash outflow = rent*12*years; Buying net cash outflow = down+(mortgage+ownership)*12*years-equity; Buying minus renting = down+(mortgage+ownership)*12*years-equity-rent*12*years
Worked example
Monthly rent: 1800; Home price: 350000; Down payment: 70000; Monthly mortgage payment: 1700; Other monthly ownership costs: 700; Comparison years: 7; Estimated equity at end: 100000.
Renting cash outflow: 151,200 ; Buying net cash outflow: 171,600 ; Buying minus renting: 20,400 .
Assumptions and limits
This simplified comparison requires your own equity estimate and excludes opportunity cost, rent growth, selling costs and tax effects unless built into inputs.
Results are rounded for display; calculations use unrounded values. Read our calculation methodology.
Understanding the result
Compare simplified multi-year housing cash outflows for renting and buying. The displayed figures use the inputs and formula shown on this page.
When this tool is useful
Use the rent versus buy to compare a scenario, check an estimate, or verify a manual calculation.
Understanding your inputs
| Input | What to enter |
|---|---|
| Monthly rent | Enter a number of at least 0.000001 and no more than 1000000000000. |
| Home price | Enter a number of at least 0.000001 and no more than 1000000000000. |
| Down payment | Enter a number of at least 0 and no more than 1000000000000. |
| Monthly mortgage payment | Enter a number of at least 0.000001 and no more than 1000000000000. |
| Other monthly ownership costs | Enter a number of at least 0 and no more than 1000000000000. |
| Comparison years | Enter a number of at least 0.01 and no more than 50. |
| Estimated equity at end | Enter a number of at least 0 and no more than 1000000000000. |
Frequently asked questions
What should I check before using the rent versus buy result?
This simplified comparison requires your own equity estimate and excludes opportunity cost, rent growth, selling costs and tax effects unless built into inputs.
Is this rent versus buy result exact?
It is exact for the stated mathematical model and entered values. Real-world results can differ when rates, timing, fees, definitions or measurement conditions differ.