Rent vs. Buy Calculator
Compare the true long-term cost of renting versus buying a home. Accounts for equity growth, appreciation, opportunity cost of your down payment, and all carrying costs over your chosen time horizon.
R Renting
B Buying
Enter rent and home price to compare
Fill in both renting and buying details above.
After — Years
—
—
Net Cost to Buy
—
After equity recovered
Net Cost to Rent
—
After investment gains
Break-Even Year
—
Buying cheaper after this year
Home Equity at End
—
After selling costs (~6%)
Final Home Value
—
After appreciation
Monthly Mortgage
—
Principal + interest
Cumulative Net Cost Over Time
Lower line = better financial outcome
Year-by-Year Breakdown
| Year | Buy Net Cost | Rent Net Cost | Home Value | Equity |
|---|
What This Calculator Accounts For
Most rent vs. buy comparisons only look at mortgage payment vs. rent. That’s misleading. This calculator accounts for the full financial picture on both sides:
Buying includes:
- → Mortgage P&I + property tax + insurance
- → Annual maintenance (1% of home value)
- → Upfront buying & selling transaction costs
- → Equity and appreciation offset against costs
Renting includes:
- → Monthly rent + annual rent increases
- → Investment return on down payment capital
- → No maintenance, no transaction costs
Renting vs. Buying in the US
The median US homeowner stays in their home for about 7 years before selling or refinancing. At high mortgage rates (above 6.5%), the break-even point often extends to 5–8 years — meaning renting may be more cost-effective for shorter time horizons.
Key factors that favor buying:
- Planning to stay 7+ years in the same area
- Home prices expected to appreciate above inflation
- Rent increases rapidly in your market
- You value stability, customization, and building equity
When Buying Wins vs. When Renting Wins
The break-even point depends on how fast the market appreciates, your mortgage rate, and how long you stay. Here are two concrete scenarios showing how the math plays out differently.
Scenario A: Stable Market, Long Stay — Buying Wins
Buying
- Home price: $350,000
- Down payment: $70,000 (20%)
- Rate: 6.9% / 30-yr fixed
- PITI: ~$2,400/mo
- Annual appreciation: 3%
- Stay: 10 years
Renting
- Monthly rent: $2,000
- Annual rent increase: 4%
- Down payment invested @ 6%
- No maintenance costs
Scenario B: High Rates, Short Stay — Renting Wins
Buying
- Home price: $500,000
- Down payment: $100,000 (20%)
- Rate: 7.5% / 30-yr fixed
- PITI: ~$3,800/mo
- Annual appreciation: 2%
- Stay: 3 years
Renting
- Monthly rent: $2,800
- Annual rent increase: 3%
- Down payment invested @ 5%
- No closing/transaction costs
The Non-Financial Factors
Numbers only tell part of the story. Renting provides flexibility for job changes and market dislocations. Buying provides stability (fixed payment vs. unpredictable rent hikes), forced savings through equity, and the ability to renovate. The right answer depends on your specific situation — use the calculator above to see your personal break-even year.