LifeCost

Rent vs Buy Total Cost

Rent vs Buy Calculator — Total Cost Comparison

What this calculator does

This calculator adds up the true cost of renting versus buying over a set number of years. It includes rent, mortgage interest, property taxes, insurance, maintenance, and home appreciation.

The math, with a worked example

Rent cost = rent × 12 × years. Buy cost = down payment + mortgage payments + taxes + insurance + maintenance − estimated home appreciation. Renting at $1,800 for 10 years costs about $216,000. Buying a $400,000 home with 10% down, 7% mortgage, and 1.2% taxes can cost more or less depending on appreciation and selling costs.

Why this matters

Rent vs buy is the biggest either-or most people ever run, and both sides hide costs: rent compounds with raises, buying front-loads interest, taxes, insurance, and maintenance. Ten years of $1,800 rent is $216,000 — whether the $400,000 house beats that depends on numbers you can check, not on which side feels like throwing money away.

Methodology and transparency

Rent side = rent × 12 × years, held flat. Buy side = down payment + mortgage payments + taxes + insurance + maintenance − estimated appreciation. Two assumptions do most of the work and both are yours to challenge: flat rent (real rents rise, which favors buying) and straight-line appreciation (it decides the outcome more than any other input, and nobody knows it in advance). Run it twice, with appreciation at 0% and at your hopeful number, to see the spread. Everything runs in your browser; no data is sent or stored.

Last reviewed: 2026-08-08

Common questions

Does this include home appreciation?

Yes. The calculator subtracts estimated appreciation from the buy cost.

What about selling costs?

The simplified model does not include realtor fees or closing costs. Add roughly 6–10% of sale price on your own.

Is renting always throwing money away?

No. Renting can be cheaper after accounting for maintenance, taxes, and the opportunity cost of a down payment.

Related calculators

More in Big Decisions