Rent vs Buy Calculator

Rent vs Buy Calculator 2025 — Is It Better to Rent or Buy a Home?

Deciding whether to rent or buy a home in 2025 is a major financial choice. Our free calculator compares the total cost of renting vs buying using your inputs (rent, home price, down payment, interest rate, taxes, and maintenance) so you can make a data-driven decision.

How the Rent vs Buy Calculator Works

Enter your monthly rent, home price, down payment %, interest rate, and optional property tax/maintenance. We then estimate:

• Total rent paid over the years (with annual rent increases)
• Mortgage payments across your loan term
• Property taxes and maintenance/insurance costs
• Upfront down payment and total cost of ownership

The result clearly shows which option is cheaper over your time horizon, so you’re not guessing—you’re deciding with numbers.

When Renting Makes Sense

• You plan to move within a few years or want flexibility.
• Home prices are overheated in your area.
• You prefer to avoid surprise maintenance and property taxes.
• You’d rather keep cash for investments or other goals.

When Buying Makes Sense

• You’ll stay put for 5+ years and value stability.
• Mortgage rates are reasonable for your budget.
• You can afford a healthy down payment (often 15–20%).
• You want payments to build equity over time.

The True Cost Comparison

Our calculator doesn’t just compare rent vs mortgage payments. It includes interest, taxes, insurance, maintenance and a realistic rent growth rate—so you see your full housing cost over time, not just month-one.

Notes on the 2025 Market

Markets remain mixed in 2025: mortgage rates are higher than early-2020s lows, while rents in many cities continue to rise. That’s why running the numbers for your situation matters more than ever.

Quick Example

Paying $2,000 in monthly rent vs buying a $400,000 home with 20% down and a 6.5% rate: buying can cost more upfront but often becomes cheaper long-term as rent escalates.