Rent vs Mortgage Calculator
Compare renting vs buying costs. Enter monthly rent and mortgage payment to see the difference and break-even analysis.
Compare total cost of renting vs buying over timeTry: Monthly rent=1800, Monthly mortgage payment=2200
How to Use
Enter your current monthly rent and the estimated mortgage payment for a comparable property. The calculator shows the monthly difference. This is a starting point — buying also builds equity, while renting offers flexibility.
A full rent-vs-buy analysis should include opportunity cost of the down payment, maintenance, property taxes, appreciation, and your time horizon. This calculator focuses on the monthly cash difference.
Frequently Asked Questions
Is it always better to buy than rent?
No. Buying makes sense when you plan to stay 5+ years, can afford the down payment, and the monthly cost is manageable. Renting is better for short-term stays, uncertain job markets, or when buying would stretch your budget.
What costs does this calculator miss?
It focuses on monthly payments only. A full comparison should include down payment opportunity cost, maintenance (1% of home value/year), property taxes, insurance, closing costs, and potential appreciation.
How do I estimate a mortgage payment?
For a rough estimate: at 7% interest on a 30-year loan, the payment is about $6.65 per $1,000 borrowed. A $240,000 mortgage ≈ $1,600/month (principal + interest only, add taxes and insurance).