Rent vs Buy Calculator
Compare the true costs of renting versus buying a home to make the best financial decision
Calculate with Rent vs Buy Calculator
Home Purchase
Home Rent
Your Information
Result
Buying is cheaper if you stay for 7.1 years or longer. Otherwise, renting is cheaper.
Average cost based on the length you stay for the next 30 years
| Staying Length | Average Buying Cost | Average Renting Cost | ||
|---|---|---|---|---|
| Monthly | Annual | Monthly | Annual | |
| 1 Year | $6,086 | $73,029 | $2,815 | $33,780 |
| 2 Years | $4,203 | $50,431 | $2,719 | $32,633 |
| 3 Years | $3,569 | $42,828 | $2,710 | $32,525 |
| 4 Years | $3,247 | $38,969 | $2,723 | $32,681 |
| 5 Years | $3,050 | $36,605 | $2,746 | $32,948 |
| 6 Years | $2,915 | $34,984 | $2,773 | $33,272 |
| 7 Years | $2,815 | $33,785 | $2,803 | $33,633 |
| 8 Years | $2,737 | $32,847 | $2,835 | $34,018 |
| 9 Years | $2,673 | $32,081 | $2,869 | $34,422 |
| 10 Years | $2,619 | $31,432 | $2,904 | $34,842 |
Monthly Cost Breakdown
Buying
Renting
Buying After 10 Years
Renting After 10 Years
Scenario Comparison
Buying has the higher modeled net position in this scenario. After 10 years, the difference is approximately $108,145 compared with renting under your assumptions.
Results depend on the inputs you entered and do not include every local tax rule, financing term, transaction cost, or market condition.
Assumptions
Use Rent vs Buy Calculator for housing-cost and ownership planning when you need a clear estimate, transparent inputs, and a result you can review before taking the next step.
Worked example
When To Use Rent vs Buy Calculator
- Start with a representative scenario in Rent vs Buy Calculator so rates, dates, balances, or other key assumptions match the question you are comparing.
- Review whether the estimate matches the planning scenario before you use it for a budget, plan, or discussion.
Sample Input And Output Checks
- Start with inputs that match the real scenario, not only a rounded placeholder.
- Review home price, rent growth, closing costs, property tax, insurance, and time horizon before trusting the output.
- Confirm lender quotes, tax bills, HOA terms, and local market assumptions before using an estimate for a real housing decision.
About This Tool
Our rent vs buy calculator compares the long-term cost of renting with the cost of buying a home. It includes mortgage payment, down payment, closing costs, property tax, insurance, maintenance, HOA fees, selling costs, rent increases, renter insurance, and the opportunity cost of investing cash that would otherwise be used to buy. The result shows the break-even year, upfront cash difference, price-to-rent ratio, monthly cost breakdown, and 30-year average cost table.
Beyond Monthly Payments
Most people compare renting vs buying by looking only at monthly payments, such as rent versus mortgage. That misses several assumptions that can change the model. Buying involves down payment opportunity cost, closing costs, property taxes, homeowners insurance, maintenance and repairs, HOA fees, and potential PMI. Renting usually has lower upfront cash needs, but rent increases and renter insurance still matter. The comparison should be read as a scenario model rather than a recommendation. Use our Mortgage Calculator to estimate payment amounts for separate loan scenarios.
Time Horizon Matters
The break-even point is the first modeled year where the cumulative buying scenario becomes lower than the cumulative renting scenario. It can move widely when appreciation, rent inflation, interest rate, selling costs, maintenance, investment-return assumptions, or holding period change. Short time horizons often make transaction costs more visible, while longer horizons give equity and appreciation assumptions more time to affect the model. Check your Home Affordability Calculator when you need a separate borrowing and payment estimate.
Market Conditions Impact
Local market assumptions can change the rent-versus-buy comparison. Price-to-rent ratio, property tax rate, insurance, HOA fees, maintenance, local rent inflation, and expected appreciation all move the modeled outcome. Higher mortgage rates can increase the cost of buying in the model, while faster appreciation assumptions can make ownership look stronger. Treat those values as sensitivity inputs, not as predictions. If you are separately modeling a property as a rental, use our Rental Property Calculator to review income and expense assumptions.
Opportunity Cost of Down Payment
The down payment is a major opportunity-cost input. Money used for upfront cash, closing costs, and reserves could otherwise remain liquid or be invested elsewhere, while home equity may be harder to access quickly. The calculator lets you compare the assumed return on that cash with the assumed home appreciation rate. Because both values are uncertain, use a range of conservative and optimistic assumptions before drawing conclusions from the modeled break-even year.
Non-Financial Considerations
Financial calculations don't capture everything. Homeownership provides stability, control over your living space, freedom to renovate, pet ownership without restrictions, and emotional satisfaction of owning. However, it ties you to one location, requires time and money for maintenance, exposes you to market risk, and reduces career mobility. Renting offers flexibility to relocate easily for jobs or lifestyle, landlord-handled maintenance, no exposure to housing market downturns, lower upfront costs, and ability to live in expensive neighborhoods you couldn't afford to buy in. The best choice balances financial optimization with lifestyle priorities, career trajectory, family plans, and personal preferences.