Rent vs Buy Calculator
Compare the costs of renting versus buying a home over time.
Important Notice
These calculators are for educational and informational purposes only. Results are estimates based on the information you provide and should not be considered financial, tax, or investment advice. Your actual results may vary. For personalized guidance, please consult a qualified financial advisor, tax professional, or other appropriate expert.
People Also Ask
Is it better to rent or buy?
It depends on your timeline, local market, and finances. Buyers staying 5+ years have more time to recover transaction costs. Renting offers flexibility and avoids maintenance costs and market risk.
How long should I plan to stay to make buying worth it?
Generally 5-7 years minimum. This allows time to recover closing costs (3-6% of price) and benefit from appreciation. Shorter stays often favor renting due to transaction costs.
What are the hidden costs of owning a home?
Beyond the mortgage: property taxes, homeowner's insurance, maintenance (1-2% of value annually), HOA fees, repairs, and opportunity cost of your down payment if invested elsewhere.
How does home appreciation affect rent vs buy?
Appreciation benefits buyers by building equity. This calculator factors in expected appreciation. In flat or declining markets, renting may be financially superior.
Is renting throwing money away?
No. Rent pays for housing services just like a mortgage pays interest, taxes, and maintenance. The real comparison is between rent and the true costs of ownership, not just the mortgage.
What is the break-even point for buying?
The break-even point is when total buying costs equal renting costs. This varies by location and market but is typically 3-7 years. This calculator shows your specific break-even.