Buying
Renting
Better Option
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Net Cost of Buying
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Net Cost of Renting
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"Net cost of buying" = mortgage interest + taxes/maintenance − appreciation. "Net cost of renting" = total rent paid − investment growth on the down payment you didn't spend.
Free Rent vs. Buy Calculator
Compare the true cost of renting vs. buying over your expected time horizon.
Buying isn't automatically better just because you build equity — this calculator also credits renting with the investment growth your down payment could have earned elsewhere. The shorter your time horizon, the more renting tends to win, since buying costs (closing costs, interest-heavy early payments) take years to be offset by appreciation.
Frequently Asked Questions
What isn't factored in here?
Closing costs, moving costs, and tax deductions on mortgage interest are excluded for simplicity — use this as a directional estimate.