Renting can be cheaper today.
Buying can build equity later.
Compare the long-term cost of renting versus buying by modeling mortgage payments, home equity, rent increases, upkeep, taxes, and opportunity cost.
Rent vs. Buy Calculator
Compare renting and buying
Rent vs. Buy Calculator
Estimate whether renting or buying may leave you better off over your expected time horizon.
Break-even projection
Projected wealth from buying versus renting
Compare the projected buyer equity after a sale with the renter investment balance over the same period.
Rent or buy guide
The better choice depends on the full holding-period math
The rent versus buy decision is not just mortgage payment versus rent. Ownership adds taxes, insurance, repairs, transaction costs, and equity. Renting keeps more flexibility and may leave more cash available to invest.
How the comparison is calculated
The calculator projects buyer net worth from estimated sale proceeds and invested monthly savings. It projects renter net worth by investing the down payment, closing costs, and any monthly savings from renting.
Comparison framework
Buy includes sale proceeds.
Rent includes invested cash.
Break-even is the first year buying leads.
Included in this estimate
- Mortgage principal and interest
- Property tax, insurance, maintenance, and HOA assumptions
- Closing costs, selling costs, and remaining loan balance
- Invested renter savings and buying break-even estimate
Still adjust before deciding
- Tax deductions, capital gains exclusions, or itemized tax planning
- Moving costs, furnishing costs, utility differences, and deposits
- Refinancing, adjustable-rate loans, or mortgage points
- Market volatility, repair shocks, rent control, or local insurance surprises
Decision drivers
Inputs that can change the rent versus buy answer
Small changes in assumptions can flip the result. Test the numbers you control, then stress test the market variables you cannot control.
Home price and rent
Use a realistic home price and a comparable rental, not the cheapest rent or the dream-home purchase price.
Upfront cash
Down payments and closing costs matter because renters can keep that cash invested instead.
Mortgage terms
Rate and term set the principal and interest payment, which can change the break-even year quickly.
Growth assumptions
Rent growth, home appreciation, and investment returns drive the long-term comparison more than a single monthly payment.
Planning strategy
When buying needs more than a lower payment
Buying can be a strong long-term move, but it is not automatically better. A useful comparison accounts for time, transaction costs, local price-to-rent conditions, and the return you might earn outside the home.
How long you will stay
Short stays make closing costs and selling costs harder to overcome.
Monthly budget pressure
A home can be a poor fit if the payment leaves too little room for repairs, savings, or job changes.
Local rent-to-price math
High home prices relative to rent often push the buying break-even point further out.
Alternative investments
The down payment has an opportunity cost when that money could stay in a diversified portfolio.
Before you choose
Use local numbers before making the call
National averages can hide big local differences. Ask lenders, insurers, tax offices, landlords, and contractors for numbers that match the home and neighborhood you are considering.
Planning checklist
- Compare a home and rental that would actually meet the same household needs.
- Replace the default property tax, insurance, HOA, and maintenance assumptions with local estimates.
- Run low, middle, and high scenarios for appreciation, rent growth, and investment returns.
- Use a lender Loan Estimate before relying on the mortgage payment or cash-to-close number.
Rent vs. buy FAQ
Common questions about renting versus buying
What does this rent vs. buy calculator compare?
It compares the projected net worth from buying a home against renting and investing the upfront cash and any monthly savings. The estimate includes mortgage principal and interest, property taxes, insurance, maintenance, HOA dues, closing costs, selling costs, rent growth, home appreciation, and investment returns.
What is the break-even point for renting versus buying?
The break-even point is the first year when the buying scenario is projected to leave you with more net worth than renting. If the calculator does not find one, renting remains ahead within the years you entered.
Why can renting win even if mortgage payments build equity?
Renting can win when the monthly ownership cost is much higher than rent or when the down payment and closing costs could earn more if invested elsewhere. Property taxes, insurance, maintenance, and selling costs can also delay the break-even point.
Why can buying win even if the payment is higher?
Buying can win if home appreciation, principal paydown, and long holding periods outweigh higher monthly costs and transaction expenses. The longer you stay, the more time fixed mortgage payments and equity growth have to work.
Should I include property taxes and maintenance?
Yes. Principal and interest alone usually understate the cost of owning. Add realistic property tax, insurance, maintenance, HOA, closing cost, and selling cost assumptions before relying on the estimate.
Does the calculator store my housing details?
No. The estimate is calculated in your browser and does not ask for personal information.