Rent vs buy calculator

Compare the real cost of renting and owning over the years you expect to stay, including equity, appreciation and selling costs.

Over 7 years

Buying saves $0

Total cost of renting$0

Net cost of buying$0

Assumes 1.1% property tax, 0.28% insurance, 1% maintenance, 3% closing costs to buy and 5% to sell. Illustration only.

How the comparison works

Every number above is an estimate. A loan officer can replace assumptions with your actual taxes, insurance quotes and pricing.

Cost of renting
Total rent paid over the period, rising each year by your rent increase rate, plus renters insurance.
Cost of buying
Mortgage payments, property tax, insurance and maintenance, plus closing costs to buy and about 5% to sell, minus the equity you walk away with.
Equity
Your down payment, the principal you pay down and any appreciation. Appreciation is never guaranteed, so try a few rates, including zero.
Break-even year
The first year in which owning costs less in total than renting. In Greater Boston it is often between year four and year seven.

No. Many households take the standard deduction, so we leave mortgage interest deductions out to keep the estimate conservative.

That opportunity cost matters. A simple way to account for it is to lower the appreciation rate by a point or two.

We assume 1% of the home's value per year. Older Boston-area homes and multi-families can run higher.

Get a pre-approval with your actual rate, taxes and cash to close. Soft credit check, and a local loan officer follows up the same day.