Enter one home and one rental for the same city. We adjust for mortgage costs, property tax, maintenance, equity built, and the opportunity cost of your down payment.
⚠ Estimates only, not financial advice — see the note below the results for details.
Each line already includes every adjustment above it — this isn't a list to add up. Compare using the bottom line only.
Estimates only, not financial advice. Mortgage payment uses standard fixed-rate amortization. Property tax (US) and Council Tax (UK) are approximate location-based figures. Equity built combines principal repaid and home appreciation, valued on the original purchase price. Opportunity cost values your down payment and closing costs at the investment return rate you entered, since that capital could otherwise be invested if you rented instead.
Rent vs Buy takes one rental and one home purchase for the same city and runs each through four stages to estimate the true monthly cost of each path.
For renting, this is simply your monthly rent. For buying, it's the fixed-rate mortgage principal-and-interest payment on your loan amount, rate, and term.
Renting adds renters insurance. Buying adds property tax (US) or Council Tax (UK) for your city, home insurance, maintenance, and any HOA or service charge — the recurring costs of owning that a rent payment doesn't carry.
Part of every mortgage payment isn't really a cost — it's forced savings. We subtract the average monthly principal you pay down plus average monthly home appreciation (based on your original purchase price), since both add to your net worth rather than leaving your pocket for good. Renting builds no equity, so nothing is subtracted.
Buying ties up cash in a down payment and closing costs that a renter could otherwise invest. We add back the monthly opportunity cost of that capital, valued at the investment return rate you enter, to get each option's net true monthly cost.
No. Rent vs Buy gives a directional estimate to help you think through a decision, not a substitute for a financial advisor, mortgage broker, or accountant. Real decisions depend on your credit, local market conditions, and personal circumstances that a general calculator can't capture.
We currently support the same set of major US and UK cities as our other calculators. Use the "View supported cities" button at the top of the page for the full list.
These are approximate, illustrative figures by city — an effective annual rate for US property tax and a representative Band D estimate for UK Council Tax. Actual rates vary by county, borough, and individual assessment, so treat them as a starting point rather than an exact bill.
A mortgage payment blends interest, which is a true cost, with principal, which builds ownership you keep. Home appreciation does the same. Subtracting both from the raw payment gives a fairer comparison to rent, which builds no equity at all.
A down payment and closing costs are cash you can no longer invest elsewhere. If you rented instead, that same money could earn a return. We add that foregone return back as a cost of buying, using the investment return rate you enter.
Property tax, Council Tax, and cost data are reviewed periodically alongside our other calculators. This tool currently reflects approximate 2026 figures. Mortgage rate, home price, and rent are always your own live inputs.
Rate data: 2026