Rent vs buy
Rent vs Buy: What Each Costs Over Time
Compare the total cost of renting against owning over the years you plan to stay, counting interest, taxes, insurance, upkeep, selling costs and the equity you build.
- Total paid as an owner
- $361,736Down payment, principal and interest, taxes, insurance and upkeep.
- Cash back at sale
- $159,059Sale price less selling costs and the remaining loan balance.
- Net cost of owning
- $202,677
- Total rent paid
- $220,679
How the math works
- 1
Add up the owner’s cash out
The down payment, every monthly payment, and taxes, insurance and upkeep for the years you stay.
- 2
Add up rent
Monthly rent for the same years, rising each year by the rate you set.
- 3
Sell the home on paper
Apply the yearly price change, subtract selling costs and the loan balance still owed. That cash comes back to the owner.
- 4
Compare net costs
Owner cash out minus cash back, against total rent. The smaller number wins on these assumptions.
Worked example with the starting figures above: owning costs less by $18,002; total paid as an owner $361,736; cash back at sale $159,059; net cost of owning $202,677; total rent paid $220,679. Rates are illustrative examples, not a quote.