How is the 5-year rent total calculated?

The 5-year total sums your monthly rent plus utilities for each month, with rent increasing annually at the rate you specify (3% is the U.S. average). Year 1 uses the starting rent; each subsequent year multiplies the prior year's rent by (1 + annual increase). Utilities are held flat across years for simplicity. The result is the total out-of-pocket housing cost over five years, which is useful for comparing two cities or for deciding whether buying makes sense.

Should I include utilities in the rent comparison?

Yes — utilities (electricity, gas, water, trash, internet) can differ significantly between cities and climates and often run $150 to $400 per month. Two cities with identical rent can have very different total housing costs once utilities are included. The comparison adds utilities to rent on each side so you compare total monthly housing cost, not just the headline rent.

What is a typical annual rent increase?

The long-term U.S. average is about 3% per year, but increases vary widely by city and year. Hot markets can see 5% to 10% annual increases, while rent-controlled markets may be capped at 1% to 2%. The comparison lets you set the annual increase so you can model both a stable market (2%) and an inflationary one (5%). Note that leases often lock in rent for the lease term, so increases typically apply at renewal.

How does the lease term affect the comparison?

The lease term is the length of your current lease in months. During the lease your rent is fixed; increases typically apply at renewal. The comparison uses the lease term to show your fixed monthly cost during the first lease and then applies the annual increase for subsequent years. A longer lease locks in your rate longer and protects against near-term rent spikes.

Why compare 5-year totals instead of just monthly rent?

Monthly rent is a snapshot; over five years, small differences compound into thousands of dollars. A city that is $200 per month cheaper saves $12,000 over five years before rent increases, and often more because cheaper cities tend to have lower annual increases. The 5-year total also lets you weigh renting against buying, since a mortgage fixes your housing cost for decades while rent rises with inflation.

Does this comparison include renter's insurance or fees?

No — the comparison includes rent and utilities only. Renter's insurance (typically $15 to $30 per month), parking fees, pet rent, and one-time move-in costs (application fees, security deposit, moving expenses) are excluded. These can add $50 to $150 per month in some markets, so factor them in when making a final decision between two cities.

Cost of Living: Rent Comparison by City

A rent comparison by city tool is a free online tool that compares rent and living costs between two cities. It shows how far your salary goes in each location to help you decide where to live. Free, no sign-up required.

Rent Comparison Inputs

City A Monthly Rent?Enter your city a monthly rent.

City B Monthly Rent?Enter your city b monthly rent.

Lease Term?Enter your lease term.

Annual Rent Increase?Enter your annual rent increase.

City A Utilities?Enter your city a utilities.

City B Utilities?Enter your city b utilities.

End of inputs

Rent Comparison by City

Metric	City A $1,800.00 rent + $200.00 utilities/mo	City B $2,800.00 rent + $250.00 utilities/mo
Monthly Total	$2,000.00	$3,050.00
Annual Total	$24,000.00	$36,600.00
5-Year Total	$126,677.40	$193,387.08

City A saves $66,709.68 over 5 years.

Key Insights

City A total monthly cost (rent + utilities) is $2,000.00; City B is $3,050.00 — a $1,050.00 monthly gap.

Over 5 years with 3.00% annual rent increases, City A costs $126,677.40 and City B costs $193,387.08.

Choosing the cheaper city saves $66,709.68 over 5 years — more than the simple monthly gap ($1,050.00 × 60 = $63,000.00) because the cheaper city's rent rises off a lower base.

Guide

How to Use This Calculator

1Enter the monthly rent in City A and City B (the headline rent for a comparable apartment).
2Set the lease term in months (typically 12).
3Set the expected annual rent increase percentage (3% is the U.S. average).
4Enter the monthly utilities cost in each city (electricity, gas, water, internet).
5Review the side-by-side comparison: monthly total, annual total, and 5-year total for each city.
6Read the AI Insight panel for a personalized take on how much you save over five years by choosing the cheaper city.

Formula

How It's Calculated

MONTHLY TOTAL:
  monthlyTotal = monthlyRent + monthlyUtilities

ANNUAL TOTAL:
  annualTotal = monthlyTotal × 12

5-YEAR TOTAL (rent rises annually; utilities held flat):
  For year y (1-indexed):
    yearRent = monthlyRent × (1 + annualIncrease)^(y − 1)
    yearTotal = (yearRent + monthlyUtilities) × 12
  fiveYearTotal = sum of yearTotal for years 1 through 5

COMPARISON:
  The city with the lower 5-year total wins. Even a small monthly
  advantage compounds: a $200/month gap saves $12,000+ over 5 years
  before compounding, and cheaper cities often have lower annual
  increases too. Utilities are added because two cities with the same
  rent can have very different total housing costs once climate and
  local utility rates are included.

Glossary

Key Terms

FAQ

Frequently Asked Questions

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