Rent or Buy Calculator

Is it better to buy or rent?

Is It Better to Buy or Rent?

The New York Times Buy Rent Calculator provides an in-depth analysis of the merits of buying versus renting.  It allows you to input many variables for buying and renting, and calculate your relative position (up or down) year-by-year over a six year period.

Whether renting is better than buying depends on many factors, particularly how fast prices and rents rise and how long you stay in your home.

Compare the costs of buying and renting a home by linking to the calculator depicted below. It brings you to The New York Times website that provides this calculator.

Is it better to buy or rent?

Methodology – Is it better to buy or rent?

The calculator keeps a running tally of the most common expenses of owning and renting.

It also takes into account something known as lost opportunity costs — for example, the return you could have earned by investing your money instead of spending it on a down payment.

The calculator assumes that the profit you would have made in your investments would be taxed as long-term capital gains and adjusts the bottom line accordingly. The calculator tabulates lost opportunity costs for all parts of the buying and renting scenarios.

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