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Rent vs Own Calculator

Compare the true cost of renting versus owning a home over time.

Last updated: June 13, 2026

Calculator

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Results

Total Rent Cost$247,620

Over 10 years with 3% annual increase

Total Ownership Cost$377,375

Down payment + mortgage + tax + insurance + maintenance

Home Equity Built$232,998

Home value: $470,371 | Balance: $237,373

Net Cost of Owning$144,377

Total costs minus equity built

VerdictOwning saves $103,243

Over 10 years

Monthly Ownership Cost$2,561/mo

Mortgage: $1,770 + Tax/Ins/Maint: $792

How to Use This Calculator

  1. 1Enter your current monthly rent and expected annual rent increase.
  2. 2Enter the home purchase price, down payment percentage, and mortgage rate.
  3. 3Add annual costs for property tax, insurance, and maintenance.
  4. 4Set the expected home appreciation rate and your time horizon.
  5. 5View a side-by-side comparison with a clear verdict.

Formula Explanation

This calculator compares total rent paid over a period against the net cost of ownership (total costs minus equity built through mortgage payments and home appreciation).

Total Rent = Σ (Monthly Rent × 12 × (1 + Annual Increase)^year) Net Ownership Cost = Down Payment + Mortgage Payments + Taxes + Insurance + Maintenance − Equity Built Equity = Home Value × (1 + Appreciation)^years − Remaining Mortgage Balance

Variables:

Monthly RentCurrent monthly rent payment
Home PricePurchase price of the home
AppreciationExpected annual home value increase (typically 2-4%)
Time HorizonHow many years you plan to stay

Worked Examples

$1,800/mo rent vs $350K home, 10-year horizon

  1. 1. Total rent over 10 years with 3% increases ≈ $247,700
  2. 2. Total ownership costs ≈ $342,000
  3. 3. Equity built (appreciation + principal) ≈ $231,000
  4. 4. Net ownership cost ≈ $111,000
Result: Owning saves approximately $136,700 over 10 years

Why Use This Calculator

  • See the true all-in cost of renting versus buying.
  • Accounts for home appreciation and equity building.
  • Includes often-forgotten costs like maintenance and insurance.
  • Helps you make a data-driven housing decision.
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Tips & Best Practices

  • The longer you stay, the more owning typically wins due to equity building.
  • Do not forget maintenance — budget 1-2% of home value annually.
  • A higher down payment reduces monthly costs and total interest.
  • Rent increases compound — even 3% per year adds up significantly over a decade.

Common Mistakes to Avoid

❌ Comparing only monthly rent to a mortgage payment.

✅ Include property tax, insurance, maintenance, and opportunity cost of the down payment for a true comparison.

❌ Ignoring home appreciation.

✅ Homes historically appreciate 3-4% per year on average, which builds significant wealth over time.

Frequently Asked Questions

Is it always better to buy than rent?
Not always. If you plan to move within 3-5 years, transaction costs (closing costs, agent fees) can make renting cheaper. The break-even point depends on your local market, rates, and how long you stay.
What costs are included in homeownership?
Beyond the mortgage, ownership costs include property taxes (1-2% of home value), homeowners insurance, maintenance (1-2% of value), HOA fees if applicable, and utilities that may differ from renting.
How does the down payment affect the comparison?
A larger down payment reduces your monthly mortgage and total interest paid, making ownership more affordable. However, that capital could also be invested elsewhere, which is the opportunity cost.
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Disclaimer: This calculator is provided for informational and educational purposes only. Results are estimates and should not be used as a substitute for professional advice. RediCalc.com makes no guarantees regarding the accuracy, completeness, or suitability of any calculations. Always consult a qualified professional before making financial, health, construction, or other important decisions.

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