Rent vs buy calculator

What this calculator counts

For renting, we add up rent with yearly increases. For buying, we add your down payment, buying costs, mortgage payments, taxes, insurance, maintenance and PMI, then subtract the equity you would walk away with after 6% selling costs.

We also count the growth you give up by putting cash into a down payment instead of investments, using a 5% sample return. That keeps the comparison fair.

Why time matters so much

Buying has high upfront and exit costs. Over two or three years, renting usually wins. Around year five, equity and appreciation typically overtake those costs in most Wasatch Front scenarios, though every market and year is different.

Things numbers do not capture

Stability for kids in one school, the freedom to paint a wall or finish a basement, and protection from rent increases all have value. So does the flexibility of renting if a job move is likely.