Home buying guide
Rent vs. Buy: How to Compare the Full Cost
Compare rent growth, mortgage costs, maintenance, transaction costs, appreciation, and the alternative use of your cash.
Worked example · educational estimate · no account required
Worked example
Compare one seven-year horizon
Timeline7 years
Rent growthIncluded
Home saleNet costs
Illustrative assumptions are not a forecast of home prices, rent, or investment returns.
Choose a realistic timeline
Buying and selling costs weigh heavily during short stays. Use the number of years you realistically expect to remain.
Count ownership beyond the mortgage
Include property tax, insurance, maintenance, HOA dues, utilities, and buying and selling costs.
Compare ending assets
Home equity and potential growth on cash not used for a down payment belong in the comparison, but both rely on uncertain assumptions.
Frequently asked questions
Does a lower modeled cost mean I should buy?
No. Flexibility, location, risk, maintenance responsibility, and personal plans also matter.
Are tax deductions included?
No. Eligibility and value vary, so confirm them separately with a qualified tax professional.