🇺🇸 U.S. Rent vs Buy Calculator
Compare renting vs buying a U.S. home. Enter the price, mortgage rate, taxes, and rent to see which is cheaper per month, with a clear monthly cost breakdown.
What is this tool?
Rent vs buy compares the monthly cash cost of renting a home against owning it. Owning adds mortgage, taxes, insurance, and upkeep; renting is usually just rent plus insurance.
How it works
Enter the home price, down payment, mortgage rate and term, plus property tax, insurance, maintenance, HOA, and the rent you would pay. The tool estimates the monthly cost of each side and shows which is cheaper.
Examples
Examples: estimated monthly cost of buying vs renting (30-year loan unless noted):
| Home price | Down % | Rate | Rent/mo | Buy/mo | Rent total/mo | Cheaper |
|---|---|---|---|---|---|---|
| $400,000 | 20% | 6.5% | $2,200 | $2,823 | $2,215 | Rent |
| $400,000 | 10% | 6.5% | $2,000 | $3,075 | $2,015 | Rent |
| $600,000 | 20% | 7.0% | $3,000 | $4,343 | $3,015 | Rent |
| $300,000 | 5% | 6.0% | $1,800 | $2,334 | $1,815 | Rent |
What the estimate includes
What each monthly estimate includes:
| Side | Includes |
|---|---|
| Buying | Principal & interest, property tax, home insurance, maintenance, HOA |
| Renting | Rent plus renters insurance |
How to use
- Enter the home price and down payment.
- Enter the mortgage rate and term.
- Add taxes, insurance, maintenance, and HOA.
- Enter the rent and renters insurance, then compare.
Frequently Asked Questions
Does buying always build wealth?
Not directly. Buying builds equity through payments, but costs like tax, insurance, and maintenance offset it.
Why is renting sometimes cheaper?
When local rents are low relative to home prices and mortgage rates, renting can cost less per month.
What does the tool exclude?
Equity buildup, mortgage-interest tax deductions, and home-price changes are not counted.
Is a cheaper month always better?
No. Buying may pay off long term through equity even if the monthly cost is higher.
Can I change the loan term?
Yes. Use 15 or 30 years to see how the mortgage payment changes the comparison.
Tips & Advice
Use local numbers for tax, insurance, and rent to get a fair comparison. If buying is only slightly more per month, the equity you build may make it worthwhile. Remember the tool ignores price appreciation and tax deductions, which often favor buying.
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Sources & References
Last reviewed: September 2026.
- Consumer Financial Protection Bureau (CFPB) – Buying a house.
- Internal Revenue Service (IRS) – Home Mortgage Interest Deduction.
Limitations
Compares the estimated monthly cash cost of renting with owning, using the figures you enter. It does not model home-price appreciation, returns on the money you would not have tied up in a down payment, selling costs, or the tax treatment of mortgage interest — which is deductible only on up to $750,000 of qualified debt and only if you itemise deductions. Property tax, insurance and rent vary widely by location, so use local figures. It is a comparison aid, not financial advice.