Calculator

Rent vs Buy Calculator

Compare an annualized rent cost with an estimated ownership cost including monthly housing cost and home-value appreciation.

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This screening calculation annualizes the two monthly costs and treats appreciation as an ownership benefit. It does not replace a full cash-flow model of transaction costs, maintenance, taxes, opportunity cost and future sale proceeds.

Simplified annual rent-versus-buy differenceDifference = (Monthly rent − Monthly ownership cost) × 12 + Annual appreciation

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If rent is $2,400, ownership costs $2,900 per month and appreciation is estimated at $12,000 annually, the simplified ownership advantage is $6,000 for the year.

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  • Rates and recurring amounts stay constant for the period represented by the formula.
  • Inputs use the same monthly or annual time basis stated in each field label.
  • Taxes, fees and contractual rules are excluded unless the calculator explicitly asks for them.