Is it the right time to buy or rent? Use our rent vs. buy calculator to decide if it's better to rent or buy!
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Rent vs Buy Calculator
Make a smarter rent vs buy decision with real numbers.
Compare true monthly and long-term costs, including mortgage payments, rent increases,
equity, appreciation, and tax impacts — all in one calculator.
Break-even analysis in secondsTrue cost of renting vs buying30-year cost projectionIncludes equity & appreciationAdvanced assumptions (optional)No signup • No data stored
Deposit/upfront costs are added upfront (simple estimate).
Results
Expand cards for breakdown
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Winner: —
Break-even: —
Difference: —
Snapshot year (cards + chart highlight)
Year 7 (of 30)
Shaded region begins at the break-even year. Break-even appears in the legend.
Buying average net cost
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Includes owner costs plus upfront costs, minus equity & appreciation (optional).
Breakdown:
Mortgage payment—
Principal—
Interest—
Tax savings—
PMI—
Property taxes—
Homeowners insurance—
Condo/HOA fees—
Utilities—
Maintenance—
Estimated net (month)—
Renting average net cost
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Includes rent, renter's insurance, utilities, and (advanced) deposit + upfront costs.
Breakdown:
Rent—
Renters insurance—
Utilities—
Deposit (one-time)—
Upfront costs (one-time)—
Estimated total (month)—
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Cost over time (30 years)
Cumulative • annual totals
Year
Rent cumulative
Buy cumulative
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Frequently Asked Questions
Quick answers about how this rent vs buy calculator works.
It depends on your time horizon, financial stability, and local market conditions. Buying tends to make more sense if you plan to stay in one place for 7–10 years, have stable income, and can afford the full cost of ownership. Renting is often better if you expect to move sooner, value flexibility, or face high home prices relative to rent. This calculator compares estimated costs over time and highlights a break-even point based on your inputs.
The break-even point is the number of years you need to own a home before buying becomes financially better than renting. It accounts for:
Closing costs
Mortgage interest
Maintenance and taxes
Rent increases
Home appreciation
Most buyers break even between 5 and 8 years, but this can be shorter or longer depending on market conditions.
Buying estimates can include mortgage payments, property taxes, insurance, maintenance, HOA/condo fees, PMI, utilities, closing costs,
and optional effects from equity and appreciation. Renting estimates can include rent, renters insurance, utilities, and optional upfront costs
like deposits.
Buying is usually cheaper than renting only after you pass the break-even point, which is when your accumulated equity and appreciation outweigh the upfront and ongoing costs of ownership. This break-even point is typically 5–8 years, but it varies based on interest rates, home prices, rent growth, and maintenance costs.
No. Renting provides flexibility, predictable costs, and lower upfront expenses. While rent doesn’t build equity, it can be the smarter financial choice if buying would stretch your budget, force you into high-interest debt, or require tying up too much cash in a down payment.
Buying can make sense for some people if:
You plan to stay in the home long term
Your monthly housing costs are affordable even with maintenance
You have a stable income and emergency savings
You qualify for a competitive mortgage rate
ou want long-term housing stability
Renting may be a better option for some people if:
Higher interest rates increase the total cost of buying by raising mortgage payments and reducing how much of each payment goes toward equity. When rates are high, renting often becomes more attractive unless home prices or rents are rising rapidly.
A larger down payment can improve the buy vs rent equation by:
Lowering monthly mortgage payments
Reducing interest paid over time
Avoiding private mortgage insurance (PMI)
However, tying up too much cash can also create opportunity costs, especially if that money could be invested elsewhere.
Rent typically increases over time, while fixed-rate mortgage payments stay relatively stable. Over long periods, rising rent can make buying more attractive—but only if you stay in the home long enough to offset upfront costs.
Commonly overlooked costs include:
Maintenance and repairs (1–3% of home value annually)
Property taxes
Homeowners insurance
HOA fees
Opportunity cost of the down payment
Selling costs when you move
Renters often overlook:
Annual rent increases
Moving costs
Limited control over the property
Opportunity cost if rent rises faster than income
First-time buyers should focus less on “what’s better” and more on affordability and stability. Buying can be a great long-term move, but only if it doesn’t compromise your emergency fund, lifestyle, or financial flexibility.
Not always. Homeownership builds wealth when:
• You hold the property long enough
• Appreciation outpaces costs
• You avoid overleveraging
Buying too much house, moving frequently, or buying at peak prices can limit or even reverse wealth gains.
In today’s market, the answer is highly location- and rate-dependent. High prices and interest rates favor renting in some areas, while strong rent growth and limited inventory still favor buying in others. Local data matters more than national averages.
The biggest mistake is focusing only on monthly payment instead of total cost over time. Time horizon, opportunity cost, and long-term affordability matter far more than whether buying feels cheaper today.
There is no universal answer. The right choice depends on:
How long you’ll stay
What you can comfortably afford
Your risk tolerance
Your lifestyle goals
The best decision is the one that aligns with your financial reality—not headlines or opinions.
Yes. Equity from principal paydown is included in the net cost calculation, and home appreciation can be included or excluded using the
calculator’s settings.
No. The results are estimates for informational purposes only and do not constitute financial, legal, or investment advice.