The total cost of each path over the years you plan to stay — not just the monthly payment.
Buying is cheaper by
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Net cost of buying
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Total cost of renting
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Equity if you sell
Net cost so far, buy vs rent
A simplified model: property tax, insurance and maintenance are assumed at a combined 2% of home value a year; selling costs 6%; closing costs 3%. It does not model investing the difference if you rent instead of buying. Real numbers depend heavily on your market — use this to compare scenarios, not as a guarantee.
How this works
Net cost of buying = down payment + closing costs + mortgage payments + taxes/insurance/maintenance
− (sale price − selling costs − remaining mortgage balance)
Total cost of renting = sum of monthly rent, growing each year
Buying has a breakeven point — stay long enough and appreciation plus building equity usually overtakes renting, but selling too soon means closing and selling costs dominate.
Renting's total cost keeps rising with rent growth but never builds equity — there is nothing to get back at the end.
Interest is front-loaded on a mortgage, so the first few years pay mostly interest and very little principal — leaving early keeps most of the benefit with the lender, not you.
Currency
Amounts follow the currency selected above.
How long do I need to stay for buying to make sense?
It depends on your down payment, rate and local appreciation, but a common rule of thumb is 5 years or more — closing costs (roughly 3%) and selling costs (roughly 6%) of the home price take years of appreciation to earn back.
Does this include the opportunity cost of the down payment?
No. If you rent instead of buying, you could invest the down payment and closing costs you would have spent — this calculator does not model that return, so it understates how much cheaper renting can be over a long time horizon.
Why does buying look worse if I stay a short time?
Closing costs when you buy and selling costs when you sell are both real cash costs that do not depend on how long you stay. Spread over just 2-3 years they can outweigh the equity and appreciation built up so far.