Money Calculators
Use this mortgage vs rent calculator to compare a renting scenario with an owning scenario before a housing decision.
Quick answer
Mortgage vs Rent Decision Calculator compares rent cost with estimated owner net cost over the same holding period, including mortgage payment, taxes, insurance, HOA, maintenance, closing costs, selling costs, appreciation, and rent growth.
Live calculator
$14,939 difference over 5 years.
Out-of-pocket owner cash minus estimated equity after sale.
Includes 3.0% yearly rent growth.
Principal, interest, tax, insurance, HOA, and maintenance.
This is not a recommendation to rent or buy. Taxes, insurance, PMI, repairs, opportunity cost, local rent, market prices, closing timing, and lender terms can all change the real answer.
| Part | Estimate |
|---|---|
| Loan amount | $378,000 |
| Principal and interest | $2,451.70 |
| Property tax / month | $433.33 |
| Maintenance / month | $350.00 |
| Down payment | $42,000 |
| Closing costs | $12,600 |
| Future home value | $486,895 |
| Principal built | $23,150 |
| Selling costs | $29,214 |
| Estimated equity after sale | $102,831 |
| Owner cash out | $264,302 |
Use this as a planning estimate. Taxes, lender rules, payroll settings, fees, local rules, and timing can change real-world results.
Formula
Owner net cost = down payment + closing costs + ownership payments - estimated equity after saleEstimated equity after sale uses future home value minus remaining loan balance and selling costs. Rent cost sums monthly rent with annual rent growth.
How to use
Example
Calculator use
Before relying on it
Details
These notes make the assumptions explicit, especially where the same search query can mean slightly different things.
The calculator subtracts estimated equity after sale from down payment, closing costs, and monthly ownership costs.
Rent is summed month by month and increases once per year by the rent growth rate entered.
Short stays can make transaction costs matter more. Long stays can make appreciation, maintenance, and rate assumptions matter more.
Source notes
Benchmarks
The calculator is a decision aid, not a fixed rule. Use the output to compare scenarios and document your assumptions. Benchmark ranges are broad planning heuristics unless this page names a specific source for the range.
A broad planning heuristic: small differences can be overwhelmed by repairs, rent changes, taxes, or market moves.
Closing and selling costs can dominate if you expect to move soon.
Appreciation, rent growth, maintenance, rate, and tax assumptions get more important over time.
Calculator accuracy
The formula, inputs, example, and limitations are shown so the result is checkable, not just a number in a box.
Owner net cost = down payment + closing costs + ownership payments - estimated equity after sale
Monthly rent, Home price, Down payment, Mortgage rate, Loan term, Years staying, Taxes, Insurance, HOA, Maintenance, Closing costs, Selling costs
Money results are planning estimates. Actual taxes, loan terms, payroll settings, fees, timing, and local rules can change the real-world result.
May 25, 2026
Toolkit Shelf. Mortgage vs Rent Decision Calculator. Retrieved May 25, 2026, from https://toolkitshelf.com/tools/mortgage-vs-rent-calculator
FAQ
Compare the rent paid over the same period with the owner's out-of-pocket cost after subtracting estimated equity at sale.
No. It focuses on direct housing cash flows and estimated equity. Investment returns on down payment cash should be modeled separately.
No. It is a planning comparison. Taxes, repairs, PMI, insurance, local market prices, lifestyle needs, and lender terms can change the decision.
Buying has transaction costs. A longer holding period spreads those costs across more months, while a shorter stay gives less time for equity to build.
No. Use it for planning and comparison. Lenders, payroll systems, tax rules, fees, and personal circumstances can change the official answer.
Small changes in rates, payment timing, taxes, fees, or income can materially change the result, so the assumptions need to stay visible.