Dicno LabsFree mortgage tool
Compare monthly rent with estimated homeownership costs and see which option may be cheaper over your expected time in the home.
Rent or own
A rent vs buy calculator helps you compare the cost of continuing to rent with the estimated recurring cost of owning a home. The decision is not only financial, but a clear cost estimate can make the tradeoff easier to understand.
This tool estimates monthly rent cost, monthly ownership cost, mortgage principal and interest, total rent over your expected years in the home, and total ownership cost over the same period. It then gives a simple recommendation based on which total is lower.
Use this page with the Affordability Calculator, Mortgage Calculator, and Closing Cost Calculator for a fuller purchase plan.
Calculator
The estimate updates instantly in your browser as you adjust the inputs.
This is a simplified comparison and does not include repairs, appreciation, selling costs, rent increases, investment returns, or tax effects.
Your input is processed in your browser. Dicno Labs does not upload or store the data you enter in this tool.
How it works
This calculator compares recurring rent with recurring ownership cost over the number of years you expect to stay in the home. The monthly rent cost is simply the rent amount you enter. The ownership cost starts with the mortgage principal and interest payment, then adds monthly property tax, monthly homeowners insurance, and HOA dues.
The mortgage payment is calculated from the estimated loan amount, interest rate, and loan term. The loan amount is home price minus down payment. Property tax and insurance are converted from yearly amounts to monthly amounts so they can be compared with rent.
For example, if rent is $2,200 per month, five years of rent totals $132,000. If a home purchase creates an estimated ownership cost of $2,975 per month, five years of ownership cost totals $178,500 before considering maintenance, closing costs, appreciation, selling costs, or tax effects. In that simplified scenario, renting may look cheaper on recurring cost alone.
The result is intentionally basic. A true rent vs buy decision may include changing rents, home value growth, maintenance, transaction costs, opportunity cost of the down payment, tax treatment, and lifestyle plans. Still, a simple monthly comparison can help you decide whether it is worth doing deeper research or speaking with a lender.
A buyer comparing $2,200 rent with a $420,000 home, $60,000 down, 6.5% rate, $4,800 yearly tax, $1,600 yearly insurance, and $100 HOA may find ownership costs higher each month. If the gap is large and the expected stay is short, renting may remain financially flexible.
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It compares estimated monthly rent with estimated monthly ownership cost, then totals both scenarios over the number of years you expect to stay.
This tool includes principal and interest, property tax, homeowners insurance, and HOA dues. It does not include repairs, utilities, appreciation, selling costs, or tax effects.
The longer you stay, the more time you have to spread upfront and ongoing ownership costs. This simple tool focuses on recurring costs over the selected period.
No. Use the Closing Cost Calculator to estimate upfront cash needs separately.
No. This version gives a basic cost comparison without appreciation, rent inflation, investment returns, or resale costs.
Buying may look cheaper when the estimated monthly ownership cost is lower than rent over the selected time period.
Renting may look cheaper when monthly rent is lower than the estimated monthly ownership cost, especially over shorter time horizons.
No. Also consider savings, job stability, maintenance risk, location plans, closing costs, and lifestyle needs.
Yes. Monthly HOA dues directly increase ownership cost and can make buying less competitive against renting.
No. Your input is processed in your browser. Dicno Labs does not upload or store the data you enter in this tool.
HomeLoan Compass
Download HomeLoan Compass on Google Play for more complete mortgage planning tools, including affordability planning, loan comparison, amortization schedules, and future premium tools.