Compare the true cost of renting versus buying a home over your planned stay, including mortgage, taxes, and investment costs.
See whether renting or buying makes more financial sense for your situation
Buying usually wins if you stay 5+ years. Shorter stays favor renting due to closing costs.
Divide home price by annual rent. Below 15 = buy, above 20 = rent, 15-20 = depends on your situation.
The down payment and monthly savings could earn returns if invested elsewhere instead.
Cross-checked against authoritative formulas (IRS, NIST, ACM) and updated for 2025/2026 tax years and rates.
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Estimates only. Calculator results are for educational and planning purposes — not professional advice. For binding decisions on taxes, investments, health, or legal matters, consult a qualified professional.
FAQ
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A rent vs buy calculator is a financial tool that compares the total cost of renting versus buying a home over a chosen time horizon. Our rent vs buy calculator accounts for mortgage payments, property taxes, insurance, maintenance, opportunity cost of the down payment, and home appreciation. The rent vs buy calculator shows the break-even year and net worth difference.
How it works
Our rent vs buy calculator lets you compare the total cost of renting and buying a similar home over a given time horizon, in five steps.
Type the home price you are considering and the current rent for a similar home. Use realistic local numbers, not idealized assumptions.
Type the down payment you can afford and the mortgage rate available to you. The calculator uses these for the monthly mortgage payment, including PMI if your down payment is under 20%.
Type expected home price appreciation (3-4% historical average) and annual rent increase (3-5% typical). Conservative numbers give a more realistic projection.
Type how long you plan to stay in the home. The break-even point is usually 3-5 years - shorter than that, renting often wins; longer, buying usually wins.
The result shows total cost of renting vs buying over the period, the break-even year, and your net position at the end (including home equity for the buying scenario).
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