{
  "slug": "buy-vs-rent-home-cost",
  "title": "Buy vs Rent a Home Cost Calculator",
  "heading": "Buy vs Rent a Home Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/buy-vs-rent-home-cost",
  "summary": "Compare total cost of buying a home against renting and investing the difference.",
  "description": "Buying builds equity but carries closing costs, property tax, maintenance, and interest, while renting is simpler but builds no equity and can rise annually. This calculator compares your net cost of homeownership — mortgage payments, taxes, maintenance, and closing costs minus home appreciation and equity built — against total rent paid over the same horizon, assuming what you'd have spent on a down payment is invested instead if you rent.",
  "formula": "Buy Net Cost = Down Payment + Total Mortgage Payments + Taxes/Maintenance − Home Value at Horizon. Rent Net Cost = Total Rent Paid − Investment Growth on Down Payment.",
  "dateModified": "2026-09-06",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=buy-vs-rent-home-cost",
  "inputs": [
    {
      "id": "homePrice",
      "label": "Home price",
      "kind": "number",
      "hint": null,
      "default": 400000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "downPaymentPct",
      "label": "Down payment",
      "kind": "number",
      "hint": null,
      "default": 20,
      "unit": "%",
      "min": 0,
      "max": 100
    },
    {
      "id": "mortgageRate",
      "label": "Mortgage rate",
      "kind": "number",
      "hint": null,
      "default": 6.5,
      "unit": "%",
      "min": 0,
      "max": 15
    },
    {
      "id": "annualTaxMaint",
      "label": "Annual taxes + maintenance",
      "kind": "number",
      "hint": null,
      "default": 2,
      "unit": "%",
      "min": 0,
      "max": 10
    },
    {
      "id": "appreciationRate",
      "label": "Home appreciation rate",
      "kind": "number",
      "hint": null,
      "default": 3.5,
      "unit": "%",
      "min": 0,
      "max": 15
    },
    {
      "id": "monthlyRent",
      "label": "Comparable monthly rent",
      "kind": "number",
      "hint": null,
      "default": 2200,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "rentGrowth",
      "label": "Annual rent growth",
      "kind": "number",
      "hint": null,
      "default": 3,
      "unit": "%",
      "min": 0,
      "max": 15
    },
    {
      "id": "investReturn",
      "label": "Investment return on down payment",
      "kind": "number",
      "hint": null,
      "default": 7,
      "unit": "%",
      "min": 0,
      "max": 20
    },
    {
      "id": "years",
      "label": "Years to compare",
      "kind": "number",
      "hint": null,
      "default": 10,
      "unit": null,
      "min": 1,
      "max": 30
    }
  ],
  "outputs": [
    {
      "id": "winner",
      "label": "Lower net cost option",
      "format": "raw",
      "hint": null,
      "primary": true
    },
    {
      "id": "buyNet",
      "label": "Buying net cost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "rentNet",
      "label": "Renting net cost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "diff",
      "label": "Net cost difference",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Home price: 400000 $",
      "Down payment: 20 %",
      "Mortgage rate: 6.5 %",
      "Annual taxes + maintenance: 2 %",
      "Home appreciation rate: 3.5 %",
      "Comparable monthly rent: 2200 $",
      "Annual rent growth: 3 %",
      "Investment return on down payment: 7 %",
      "Years to compare: 10"
    ],
    "outputs": [
      "Lower net cost option: Buy",
      "Buying net cost: $109,758",
      "Renting net cost: $225,274",
      "Net cost difference: $115,516"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter home price ($).",
      "Enter down payment (%).",
      "Enter mortgage rate (%).",
      "Enter annual taxes + maintenance (%).",
      "Enter home appreciation rate (%).",
      "Enter comparable monthly rent ($).",
      "Enter annual rent growth (%).",
      "Enter investment return on down payment (%).",
      "Enter years to compare.",
      "Read your lower net cost option on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "homePrice": 240000,
        "downPaymentPct": 12,
        "mortgageRate": 3.9,
        "annualTaxMaint": 1.2,
        "appreciationRate": 2.1,
        "monthlyRent": 1300,
        "rentGrowth": 1.7999999999999998,
        "investReturn": 4.2,
        "years": 6
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "homePrice": 400000,
        "downPaymentPct": 20,
        "mortgageRate": 6.5,
        "annualTaxMaint": 2,
        "appreciationRate": 3.5,
        "monthlyRent": 2200,
        "rentGrowth": 3,
        "investReturn": 7,
        "years": 10
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "homePrice": 640000,
        "downPaymentPct": 32,
        "mortgageRate": 10.4,
        "annualTaxMaint": 3.2,
        "appreciationRate": 5.6000000000000005,
        "monthlyRent": 3500,
        "rentGrowth": 4.800000000000001,
        "investReturn": 11.200000000000001,
        "years": 16
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Why does this favor buying over long horizons?",
      "a": "Appreciation and equity paydown compound over time, and once a fixed-rate mortgage is locked in, buying's cost grows only with taxes and maintenance while rent typically rises every year."
    },
    {
      "q": "What if home prices fall?",
      "a": "Lower or negative appreciation rates in the input can flip the result — in flat or declining markets, renting and investing the difference often wins, especially over shorter horizons."
    },
    {
      "q": "Does this include closing costs?",
      "a": "Add 2-5% of home price in closing costs to the buy side for a more conservative estimate — they're excluded here to isolate the ongoing cost comparison."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/sell-vs-rent-your-house",
    "https://www.revenuelab.fyi/toolbox/mortgage-15-vs-30-year"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Buy vs Rent a Home Cost Calculator (https://www.revenuelab.fyi/toolbox/buy-vs-rent-home-cost)"
}