Rent vs Buy Calculator
Compare renting against buying by pitting your monthly rent against the mortgage payment on a home. Free and fast.
Calculator by Toolsloft ↗- Buy monthly payment
- $1,769.79
- Monthly difference
- -$230.21
- Cheaper option
- Buy
This calculator compares your current monthly rent against the mortgage payment on a home you are considering, then tells you which is cheaper per month. Use it as a first pass when deciding whether to keep renting or buy, given a specific home price, down payment, rate, and term. The result is principal and interest only.
How this is calculated
It computes the mortgage payment on the loan amount (home price minus down payment) with the standard amortization formula, payment = P times r times (1+r)^n divided by ((1+r)^n minus 1), where r is the monthly rate and n is the number of months, then compares that payment to your rent. It excludes property taxes, insurance, maintenance, and appreciation.
How to use
- Enter your current monthly rent.
- Enter the home price, down payment, annual interest rate, and loan term in years.
- Read the estimated mortgage payment, the monthly difference, and which option is cheaper.
Examples
- $2,000 rent vs $350k home:
5% down, 6.5% / 30 yr → Buy ($1,769.79) - Down payment over price:
invalid input → error
FAQ
- How is the buy payment calculated?
- The mortgage payment is computed on the loan amount (home price minus down payment) using Payment = P·r·(1+r)^n / ((1+r)^n − 1), where r is the monthly rate and n is the number of months.
- Does this account for taxes, maintenance, and appreciation?
- No. This is a simplified principal-and-interest (P&I) comparison. It excludes property taxes, insurance, maintenance, HOA fees, closing costs, and home appreciation, so use it as a rough first pass rather than a complete buy-versus-rent decision.
- What does the monthly difference mean?
- It is the mortgage payment minus your rent. A negative number means buying costs less per month than renting; a positive number means renting is cheaper.