Rent vs. Buy Calculator

How We Calculate Renting and Buying Costs

The Redfin Rent vs. Buy Calculator uses information you provide to estimate the monthly and total costs of renting or buying your next home. It considers various financial factors such as initial costs, recurring costs, opportunity costs, and net proceeds.

Initial Costs

These are the expenses you pay when you first move. Buying has higher initial costs than renting. Buyers pay a down payment and closing costs (about 24% of the purchase price). Renters usually pay a security deposit equal to one month’s rent.

Recurring Costs

These are ongoing costs. Buyers must pay mortgage, property taxes, insurance, maintenance, and utilities. Renters usually just pay the monthly rent.

Opportunity Costs

These aren't direct expenses, but represent the money you could’ve earned elsewhere. If you didn’t buy a home, you could invest that money. The calculator lets you adjust expected return on investment to estimate this cost.

Net Proceeds

This is the money you get back after selling or moving out. Buyers may get back the principal minus selling costs. Renters may get back their security deposit if conditions are met.