Rent vs Buy Calculator
Overview
Compare the 5-year cost of renting vs buying a home. Analyze total costs, equity built, and opportunity costs.
Key Facts
| Field | Value |
|---|---|
| Calculator ID | rent-vs-buy |
| Category | Finance |
| Vertical | Finance & Economics |
| App route | /verticals/finance/rent-vs-buy |
| API endpoint | /api/public/calculate?id=rent-vs-buy |
Inputs
| Input ID | Label | Type | Required | Default | Constraints |
|---|---|---|---|---|---|
currency | Currency | select | Yes | USD | - |
homePrice | Home Purchase Price | currency | Yes | 400000 | min 0 |
downPaymentPercent | Down Payment (%) | number | Yes | 20 | min 0, max 100, step 1 |
interestRate | Mortgage Interest Rate (%) | number | Yes | 7 | min 0, max 20, step 0.125 |
propertyTaxRate | Property Tax Rate (%) | number | Yes | 1.2 | min 0, max 5, step 0.1 |
hoaFees | HOA/Condo Fees (Monthly) | currency | No | 0 | min 0 |
homeInsurance | Home Insurance (Annual) | currency | Yes | 1500 | min 0 |
maintenancePercent | Maintenance (%) | number | Yes | 1 | min 0, max 5, step 0.1 |
closingCosts | Closing Costs | currency | Yes | 8000 | min 0 |
homeAppreciation | Home Appreciation (%) | number | Yes | 3 | min -5, max 10, step 0.5 |
monthlyRent | Monthly Rent | currency | Yes | 2000 | min 0 |
rentIncrease | Annual Rent Increase (%) | number | Yes | 3 | min 0, max 10, step 0.5 |
rentersInsurance | Renters Insurance (Annual) | currency | Yes | 200 | min 0 |
investmentReturn | Investment Return (%) | number | Yes | 7 | min 0, max 15, step 0.5 |
How to Use
- Enter Home Costs — Input home price, down payment, interest rate, taxes, insurance
- Enter Rent Costs — Add monthly rent, annual increase, renters insurance
- Set Assumptions — Adjust home appreciation (3-4%) and investment return (7-10%)
- Review Totals — See 5-year net position including equity and opportunity costs
- Check Break-Even — Find when buying becomes cheaper than renting
Result Surfaces
| Output | Display Type | Format |
|---|---|---|
| Computed results | result-card | - |
Related Calculators
FAQ
Should I rent or buy a house?
It depends on your timeline, local market, and financial situation. Buy if you plan to stay 5+ years, can afford a 20% down payment, and home prices are reasonable relative to rent. Rent if you might move soon, want flexibility, or if the local market heavily favors renting.
What is the 5% rule?
If annual rent is less than 5% of home price, renting is usually cheaper. If more than 5%, buying may be better. Example: $400k home × 5% = $20k/year = $1,667/month. If rent is $2,000/month ($24k/year), buying might win.
What is opportunity cost in rent vs buy?
Money used for a down payment could be invested in the stock market (historically 7-10% returns). If home appreciation is only 2-3%, you might be better off renting and investing the difference. This calculator factors in that alternative investment return.
Evidence
src/lib/calculators/registry.ts(metadata)src/lib/calculators/page-registry.ts(page/HowTo metadata)src/lib/calculators/finance/rent-vs-buy.ts(calculator config)