Nitro ToolzRent vs Buy Calculator
Compare the net cost of owning and renting over your time horizon.
Rent vs Buy Calculator
Generated 10/9/2026
- Home price: 420000
- Down payment: 20
- Mortgage rate: 6.75
- Loan term: 30
- Closing costs: 3
- Tax, insurance, upkeep (per year): 2.2
- Home appreciation (per year): 3
- Selling costs: 6
- Monthly rent: 2400
- Rent increase (per year): 3
- Return on invested cash: 5
- How long you will stay: 10
- Buying is cheaper by
- $49,334
- Break-even year
- Year 6
- Net cost of buying (10 yr)
- $220,074
- Net cost of renting (10 yr)
- $269,409
- Mortgage payment (P and I)
- $2,179.29
- Cash needed up front
- $96,600
Net cost over 10 years
Net cost counts every dollar spent, minus the money you would get back (home equity after selling costs, or investment growth for renters). Taxes and deductions are not modeled.
How to use this tool
- Fill in the purchase assumptions, then your rent and expected rent growth.
- Set how many years you will stay. Short horizons favor renting because of transaction costs.
- Read the break-even year and the cumulative cost chart.
Formulas
Net buy cost = down payment + closing + payments + upkeep - (sale value x (1 - selling %) - loan balance).
Net rent cost = total rent - growth on the cash a renter keeps (down payment + closing costs).
Frequently asked questions
Why does the time horizon matter so much?
Buying has large fixed costs at both ends. They are spread over the years you stay, so longer stays favor owning.
Does this include tax deductions?
No. Mortgage interest and property tax deductions vary by situation, so they are not modeled.
What return should I assume on invested cash?
Use a conservative figure that you would realistically earn, such as a long-run balanced portfolio return after fees.
Is this financial advice?
No. It is a simplified model. Lifestyle, stability and flexibility matter as much as the numbers.