Rent vs Buy Calculator
Find out whether renting or buying makes more financial sense for your situation.
Results assume constant rates over 30 years. Real markets fluctuate — use this as a directional guide, not a guarantee.
If you stay in the home for 5+ years, buying is cheaper than renting. Move sooner and renting makes more sense.
Average Monthly Cost Over Time
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How This Rent vs Buy Calculator Works
This calculator runs a 30-year projection comparing two scenarios: buying a home today or continuing to rent. For each year, it computes the average monthly cost of each option, accounting for dozens of financial factors.
On the buying side, it adds up your mortgage payments, property tax, insurance, HOA, and maintenance — then subtracts the equity you'd build through appreciation and principal paydown, minus selling costs if you sold at that point. It also credits you for the tax deduction on mortgage interest.
On the renting side, it totals your rent (increasing annually), renter's insurance, and deposits — then credits you for the investment returns you'd earn on the money you didn't tie up in a down payment and closing costs.
The break-even is the first year where buying's average cost drops below renting's. Stay longer than that and buying wins. Move sooner and you're better off renting.
What Moves the Break-Even Point
- Home appreciation — the single biggest factor. Higher appreciation builds equity faster and pushes the break-even earlier. Be careful with optimistic assumptions here.
- Rent increases — if rents climb fast in your area, buying locks in a fixed mortgage payment, making ownership more attractive over time.
- Closing costs — buying and selling a home is expensive (often 10%+ combined). These upfront and exit costs are why buying rarely makes sense for short stays.
- Investment returns — if you'd invest your down payment instead of buying, higher expected returns make renting more competitive.
- Interest rate — higher mortgage rates increase the cost of buying. A rate drop of even 1% can shift the break-even by years.
Beyond the Numbers
This calculator covers the financial side, but money isn't everything. Owning a home means stability, the freedom to renovate, and roots in a community. Renting means mobility, no maintenance headaches, and the flexibility to pick up and go.
If the numbers are close, let your life plans tip the scale. Planning to stay put for a decade? Buying is probably right even if the math is tight. Might relocate in two years? Renting gives you optionality that no spreadsheet can put a price on.