What factors should I consider when deciding whether to rent or buy?

Think about your long-term plans, job stability, local housing market trends, and whether you’re ready for the responsibilities of homeownership, such as maintenance and repairs.

How does a down payment affect my mortgage?

A larger down payment reduces the amount you need to borrow and can help you avoid private mortgage insurance (PMI), lowering your monthly payment and total interest.

What is private mortgage insurance (PMI)?

PMI is insurance that protects the lender if you default on your loan. It’s usually required if your down payment is less than 20% of the home’s purchase price.

Does this calculator include rent payments for comparison?

No, this calculator focuses on estimating the costs of buying. To compare, simply enter your monthly rent and see how it stacks up against the projected mortgage payment.

Are the results exact?

No, the calculator provides estimates. Actual costs may include property taxes, insurance, HOA fees, and PMI, which are not included here.

How do I save my results for future reference?

After calculating, use the Copy, Export PDF, or Export Excel options to save or share your results.

Rent vs Buy Calculator

Calculate your mortgage payment and total loan cost.

Calculator Inputs

Enter your loan details

Home Price ($)

The total purchase price of the home

Down Payment ($)

Typically 20% to avoid PMI

Interest Rate (APR %)

Annual percentage rate

Loan Term (years, 1–50)

years

Common in US: 15, 20, or 30 years

Your Results

Based on your inputs

Monthly Payment

$1,770

Total Interest

$357,125

Total Payment

$637,125

Balance Over Time

Remaining balance by year (30 years)

Principal vs Interest by Year

Principal and interest paid each year (30 years)

Yearly Breakdown

First 15 years. Download full schedule for all 30 years.

Year	Principal	Interest	Balance
1	$3,130	$18,108	$276,870
2	$3,339	$17,898	$273,531
3	$3,563	$17,675	$269,968
4	$3,801	$17,436	$266,167
5	$4,056	$17,181	$262,111
6	$4,328	$16,910	$257,783
7	$4,618	$16,620	$253,165
8	$4,927	$16,311	$248,239
9	$5,257	$15,981	$242,982
10	$5,609	$15,629	$237,373
11	$5,984	$15,253	$231,389
12	$6,385	$14,852	$225,004
13	$6,813	$14,425	$218,191
14	$7,269	$13,968	$210,922
15	$7,756	$13,482	$203,166

Amortization Schedule

First 15 months. Download full schedule for all 360 months.

Month	Payment	Principal	Interest	Balance
1	$1,770	$253	$1,517	$279,747
2	$1,770	$254	$1,515	$279,492
3	$1,770	$256	$1,514	$279,237
4	$1,770	$257	$1,513	$278,979
5	$1,770	$259	$1,511	$278,721
6	$1,770	$260	$1,510	$278,461
7	$1,770	$261	$1,508	$278,199
8	$1,770	$263	$1,507	$277,936
9	$1,770	$264	$1,505	$277,672
10	$1,770	$266	$1,504	$277,406
11	$1,770	$267	$1,503	$277,139
12	$1,770	$269	$1,501	$276,870
13	$1,770	$270	$1,500	$276,600
14	$1,770	$272	$1,498	$276,329
15	$1,770	$273	$1,497	$276,056

For educational and estimation purposes only; not financial or legal advice. Results are P&I only; actual payments may include property taxes, insurance, HOA, and PMI (typical if down <20%). U.S. conventional loans are often 15 or 30 years. Consult a qualified lender or advisor before making decisions.

Follow these steps to use the calculator and review your results:

1. Enter your loan details:

Purchase Price ($): The total price of the home you’re considering.
Down Payment ($): The amount you’ll pay upfront. A 20% down payment is typical to avoid private mortgage insurance (PMI).
Annual Percentage Rate (APR %): The yearly interest rate you expect for your loan.
Loan Term (years): Choose your mortgage length—commonly 15, 20, or 30 years.

2. Calculate:

Click “Calculate” to see your personalized results, or “Reset” to start over.

3. Review your results:

Monthly Payment: Your estimated monthly mortgage payment (excludes taxes, insurance, HOA fees, and PMI if required).
Total Interest: The sum of all interest you’ll pay over the full loan term.
Total Payment: Your full cost (principal plus interest) by the end of the loan.

4. Check the detailed breakdowns:

Balance Over Time: See how your mortgage balance decreases each year.
Principal vs Interest by Year: Visualize how much of your payment goes to principal and how much to interest, year by year.
Yearly Breakdown: Track yearly changes in principal, interest, and remaining balance for the first 10 years.
Amortization Schedule: View a month-by-month breakdown of the first year to see exactly how each payment is applied.

5. Save or share your results:

Use the Copy, Export PDF, or Export Excel features to keep your results or share them with others.

Understanding Renting vs Buying a Home

Deciding whether to rent or buy a home is a major financial choice, one that can impact your finances for years to come. Each path offers unique benefits and trade-offs. Renting can provide flexibility and lower upfront costs, while buying can build long-term equity and stability. The right decision depends on your goals, budget, and how long you plan to stay in one place.

A Rent vs Buy Calculator helps demystify this complex decision. By translating the numbers into clear, people-first insights, you get a real-world view of what each option means for your monthly budget and your future.

How This Calculator Helps

This calculator is designed to make your decision easier by showing you the true costs of buying a home. With just a few key details, you’ll see:

Your estimated monthly mortgage payment
The total interest you would pay over the life of a loan
Your total payment (principal plus interest)
How your loan balance drops over time
How much of each payment goes toward principal versus interest, especially in the early years

It also provides downloadable reports and detailed payment breakdowns. All of this helps you compare the cost of buying to your current or projected rent, so you can decide that fits your life, not just your bank account.