{
  "slug": "rent-vs-buy",
  "title": "Rent vs Buy Calculator",
  "heading": "Rent vs Buy Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/rent-vs-buy",
  "summary": "Which is cheaper over your actual holding period.",
  "description": "Buying wins on a long enough timeline because rent rises and a fixed mortgage does not. Under about five years, transaction costs usually make renting the better financial move.",
  "formula": "Compare total cost of owning (net of equity) with total rent paid plus invested down payment.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=rent-vs-buy",
  "inputs": [
    {
      "id": "price",
      "label": "Home price",
      "kind": "number",
      "hint": null,
      "default": 425000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "downPct",
      "label": "Down payment",
      "kind": "number",
      "hint": null,
      "default": 15,
      "unit": "%",
      "min": 0,
      "max": 100
    },
    {
      "id": "rate",
      "label": "Mortgage rate",
      "kind": "number",
      "hint": null,
      "default": 6.6,
      "unit": "%",
      "min": 0,
      "max": null
    },
    {
      "id": "years",
      "label": "Years you will stay",
      "kind": "number",
      "hint": null,
      "default": 7,
      "unit": null,
      "min": 1,
      "max": 30
    },
    {
      "id": "rent",
      "label": "Monthly rent",
      "kind": "number",
      "hint": null,
      "default": 2300,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "rentGrowth",
      "label": "Annual rent increase",
      "kind": "number",
      "hint": null,
      "default": 3.5,
      "unit": "%",
      "min": 0,
      "max": 15
    },
    {
      "id": "appreciation",
      "label": "Home appreciation",
      "kind": "number",
      "hint": null,
      "default": 3,
      "unit": "%",
      "min": -5,
      "max": 15
    },
    {
      "id": "ownCosts",
      "label": "Monthly taxes, insurance, upkeep",
      "kind": "number",
      "hint": null,
      "default": 750,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "invReturn",
      "label": "Return on invested down payment",
      "kind": "number",
      "hint": null,
      "default": 6,
      "unit": "%",
      "min": 0,
      "max": 15
    }
  ],
  "outputs": [
    {
      "id": "diff",
      "label": "Buying saves this much vs renting",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "ownNet",
      "label": "Net cost of owning",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "rentNet",
      "label": "Net cost of renting",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "equity",
      "label": "Home equity at the end",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "payment",
      "label": "Mortgage payment (P&I)",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "rentTotal",
      "label": "Total rent paid",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Home price: 425000 $",
      "Down payment: 15 %",
      "Mortgage rate: 6.6 %",
      "Years you will stay: 7",
      "Monthly rent: 2300 $",
      "Annual rent increase: 3.5 %",
      "Home appreciation: 3 %",
      "Monthly taxes, insurance, upkeep: 750 $",
      "Return on invested down payment: 6 %"
    ],
    "outputs": [
      "Buying saves this much vs renting: $17,718.77",
      "Net cost of owning: $164,886.44",
      "Net cost of renting: $182,605.22",
      "Home equity at the end: $195,526.36",
      "Mortgage payment (P&I): $2,307.15",
      "Total rent paid: $214,711.65"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter home price ($).",
      "Enter down payment (%).",
      "Enter mortgage rate (%).",
      "Enter years you will stay.",
      "Enter monthly rent ($).",
      "Enter annual rent increase (%).",
      "Enter home appreciation (%).",
      "Enter monthly taxes, insurance, upkeep ($).",
      "Enter return on invested down payment (%).",
      "Read your buying saves this much vs renting 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": {
        "price": 255000,
        "downPct": 9,
        "rate": 6.6,
        "years": 4,
        "rent": 1400,
        "rentGrowth": 2.1,
        "appreciation": 1.7999999999999998,
        "ownCosts": 450,
        "invReturn": 3.5999999999999996
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "price": 425000,
        "downPct": 15,
        "rate": 6.6,
        "years": 7,
        "rent": 2300,
        "rentGrowth": 3.5,
        "appreciation": 3,
        "ownCosts": 750,
        "invReturn": 6
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "price": 680000,
        "downPct": 24,
        "rate": 6.6,
        "years": 11,
        "rent": 3700,
        "rentGrowth": 5.6000000000000005,
        "appreciation": 4.800000000000001,
        "ownCosts": 1200,
        "invReturn": 9.600000000000001
      }
    }
  ],
  "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": "How does the rent vs buy calculator work?",
      "a": "Buying wins on a long enough timeline because rent rises and a fixed mortgage does not. Under about five years, transaction costs usually make renting the better financial move. The underlying maths is: Compare total cost of owning (net of equity) with total rent paid plus invested down payment."
    },
    {
      "q": "What do I need to enter?",
      "a": "9 values: home price, down payment, mortgage rate, years you will stay, monthly rent, annual rent increase, home appreciation, monthly taxes, insurance, upkeep, and return on invested down payment. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the buying saves this much vs renting result mean?",
      "a": "It is returned as a money amount in US dollars and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/closing-costs",
    "https://www.revenuelab.fyi/toolbox/pmi",
    "https://www.revenuelab.fyi/toolbox/home-equity"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Rent vs Buy Calculator (https://www.revenuelab.fyi/toolbox/rent-vs-buy)"
}