Free Rent vs Buy Calculator
Compare the cost of renting vs buying a home over time to see which option saves more money.
USD
USD
%
%
years
Monthly Mortgage Payment
$1,769.79
Total Rent Cost$151,200
Total Mortgage Payments$148,662
Monthly Difference (Buy - Rent)-$30.21
Monthly Mortgage Payment vs Monthly Rent
Rent vs Buy Comparison
This compares the monthly cost of renting vs a 30-year mortgage payment. A complete analysis would also consider property taxes, insurance, maintenance, appreciation, and tax benefits.
Rule of thumb: If the price-to-rent ratio (home price / annual rent) is above 20, renting is likely better financially.
Example Calculation
$1,800/month rent vs $350,000 home with 20% down at 6.5%.
- 01Down payment = $70,000, Loan = $280,000
- 02Monthly mortgage = $1,770
- 03Over 7 years: Rent = $151,200, Mortgage payments = $148,680
- 04Monthly mortgage is $30 less than rent
Frequently Asked Questions
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How to Calculate Mortgage Payments
Learn how to calculate mortgage payments step by step. Understand the mortgage payment formula, principal vs. interest breakdown, escrow, PMI, and how to use amortization schedules.