Rent vs. Buy Calculator
Compare the total cost of renting against buying over your expected time horizon — including rent growth, home appreciation, and the equity you build with each payment.
Rates and growth numbers are your estimates — this calculator publishes no rates. A 30-year fixed term is assumed for the purchase side.
Net result over 7 years
Buying wins
Buying builds about $60,301 more net wealth than renting.
- Total rent paid
- $202,289
- Total buying cost (PITI + 1% maint.)
- $270,356
- Principal paid (your equity)
- −$36,418
- Appreciation gain (est.)
- −$91,950
- Net cost of buying
- $141,988
Note: This estimator provides a rough affordability picture only. It is NOT a pre-approval, pre-qualification decision, or commitment to lend. Only a licensed loan officer reviewing your full application can determine what you qualify for.
Important: All calculations on this site are estimates for educational purposes only and do not constitute a loan offer, approval, or commitment to lend. Your actual rate, payment, and terms depend on credit approval and will be provided by your loan officer.
How this works
- Renting: your current rent compounded annually at your rent-growth estimate, for the full horizon.
- Buying: monthly principal & interest plus tax (1.1%/yr, Illinois estimate), insurance (0.35%/yr), and 1%/yr maintenance — all as a share of the purchase price.
- Net cost of buying subtracts what buying puts back in your pocket: the principal you've paid down (equity) and the estimated appreciation gain.
- Not modeled: investing your down payment elsewhere, selling/closing costs at move-out, tax benefits, or renters insurance. Those shift the margin, not the method.
On the fence between renting and buying? Talk through your situation — no pitch, just the math.