Rent vs. Buy Calculator
Enter your values below and click Calculate for instant results.
🏘️ Renting
$
%
🏠 Buying
$
$
%
Compare the long-term financial cost of renting vs. buying a home. See which option makes more sense for your situation over your target time horizon.
Enter your values below and click Calculate for instant results.
The rent vs. buy decision is one of the most significant financial choices most people make. The conventional wisdom that buying is always better than renting is an oversimplification — the right answer depends on how long you plan to stay, the local market, your financial situation, and what you would do with the down payment money if you didn't buy.
💡 The break-even point — the number of years you need to stay in a home for buying to make more financial sense than renting — is typically 4 to 7 years in most US markets. Staying shorter than this usually means renting wins financially because closing costs and transaction fees haven't been amortized.
When comparing rent to a mortgage payment, buyers often forget to include property taxes (typically 1–1.5% of home value annually), homeowners insurance (around $1,200–$1,800 per year), maintenance and repairs (typically estimated at 1% of home value per year), and HOA fees where applicable. These can add hundreds of dollars per month to the true cost of ownership.
Buying builds equity — you're paying yourself instead of a landlord in the long run. Home values historically appreciate over time. Mortgage interest may be tax-deductible for some homeowners. And there are intangible benefits like stability, customization, and not having a landlord raise your rent or sell the property.
Renting makes more financial sense when you plan to move within a few years, when home prices are very high relative to rents in your market, or when the flexibility of renting allows you to take better career opportunities. The money not tied up in a down payment can also be invested, which factors into the true comparison.