Housing cost scenario

Rent vs. buy housing cost comparison

Compare entered rent with a fixed-rate home purchase scenario over your chosen time horizon, including taxes, insurance, maintenance, and a flat home value assumption.

Compare your entered rent scenario with a home-purchase scenario over the same number of months. Use written loan estimates and local cost estimates where possible. This model does not predict home prices or tell you which choice is right for you.

Rent scenario

Monthly rent today ($) Annual rent change assumption (%) Other monthly renter costs ($)

Buy scenario

Home purchase price ($) Down payment ($) Mortgage fixed annual rate (%) Mortgage term (years) Property tax per month ($) Homeowners and other insurance per month ($) Maintenance and repair budget per month ($) Mortgage insurance and HOA per month ($) Purchase closing costs ($) Estimated selling costs at comparison end ($)

Comparison period

Time in the home (years)

Enter rent, mortgage, home-cost, and time-horizon assumptions to compare.

The model applies the entered rent-change assumption at each 12-month anniversary. For the buy scenario, home value stays equal to the purchase price, so appreciation and decline are both 0%. It assumes the home is sold at the end of the period and applies the selling cost you enter. Tax effects, down-payment opportunity cost, utilities, moving costs, and costs not entered are excluded.

What the comparison can show

Renting and buying have different cost and risk profiles. The Consumer Financial Protection Bureau notes that buyers may pay property taxes, insurance, repairs, maintenance, and transaction costs, while a renter may have more flexibility if a move is possible. Costs and home values vary, so use several plausible inputs rather than treating one output as a forecast.

The estimated rent total adds the monthly rent and other renter costs you enter across the selected period. The home total adds your down payment and purchase closing costs, scheduled mortgage payments made during the period, the remaining loan payoff when the home is sold, monthly ownership costs, and entered selling costs, then subtracts the assumed sale price. Mortgage payments use a fixed rate with monthly payments. If the loan term ends before the comparison period, no further mortgage payments are included.

Use current Loan Estimates and local tax, insurance, maintenance, and transaction estimates. The CFPB explains that calculators rely on assumptions about future economic conditions and recommends trying different scenarios. This tool holds home value flat and does not estimate tax benefits.

CFPB sources checked November 3, 2026: financial considerations of buying a home, rent-versus-buy decisions and calculator assumptions, and the Loan Estimate explainer. Results are limited to the user-entered costs and the flat-home-value assumption; local taxes, insurance, transaction costs, and legal rules vary.

For monthly principal, interest, taxes, and insurance components, use the full housing-cost estimator. See the mortgage payment calculator for the principal-and-interest payment formula. These tools are educational estimates, not personalized financial advice.

How it works

Enter current monthly rent and expected annual rent change, then enter a home price, down payment, fixed mortgage rate and term, monthly ownership costs, transaction costs, and a comparison horizon. The model assumes no home price change.

Good to know

How does the calculator compare renting and buying?

It totals rent and other monthly renter costs with the entered annual rent-change assumption. The buying scenario includes the down payment, purchase closing costs, modeled mortgage payments during the comparison period, taxes, insurance, maintenance, association fees, the remaining mortgage payoff at sale, and selling costs. Sale proceeds use the original purchase price, which assumes zero appreciation or decline.

Does the calculator predict whether home prices or rent will change?

No. You enter the annual rent-change scenario. The model holds the home's sale price equal to its purchase price, with no appreciation or decline. Actual rents, home values, transaction costs, and ownership expenses can change; try alternate scenarios and use current local estimates.

What costs and financial effects are excluded?

The comparison excludes the opportunity cost of the down payment and other savings, tax effects, utilities, moving costs, and expenses not entered. It is not a complete personal budget, loan offer, or financial recommendation.

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