Calculator
Rent pays for a place to live. A mortgage payment pays for a place to live and pays down a loan on an asset you own. Plug in your numbers and see how the two compare over time.
Renting
Buying
Net cost of owning Total rent paid, by year
Renting: adds up every rent check over the years you plan to stay, with rent going up each year.
Owning: adds up your down payment, closing costs and every monthly cost (principal, interest, taxes, insurance, mortgage insurance, HOA and maintenance). Then it subtracts what you'd walk away with when you sell, after paying off the loan and selling costs. What's left is the real cost of owning.
The biggest factor is usually how long you stay. Buying and selling cost money, so owning tends to pull ahead the longer you keep the home. Meanwhile your principal and interest payment on a fixed-rate loan stays put while rents typically rise. Try changing "Years you plan to stay" to see where the lines cross.
Estimates for illustration only, not a loan offer or financial advice. Home values can go down as well as up, and rent growth, taxes and insurance vary. Tax benefits like the mortgage interest deduction aren't included and may help owners who itemize.
I'll run your actual payment with today's rates and your budget.