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Rent vs Buy Calculator — Should I Rent or Buy a Home?

Compare the true total cost of renting vs buying over your timeline. Find the break-even point and get a data-driven recommendation.

Free, no signup Runs in your browser — nothing stored Reviewed October 2026
Renting vs Buying Details

🏢 Renting

🏠 Buying

📊 Assumptions

1 year15 years30 years

How This Rent vs Buy Calculator Works

This calculator compares the full financial picture of renting versus buying. On the renting side: monthly rent with annual increases plus renters insurance. On the buying side: mortgage payments, property taxes, insurance, maintenance, HOA, minus tax benefits and equity building. It also factors in the opportunity cost of your down payment (what it would earn if invested instead).

When Buying Makes Sense vs When to Rent

Buying generally wins when:You're staying 5+ years, you have 20% down, rates are reasonable, and the price-to-rent ratio in your area is below 20. Renting generally wins when: You might move soon, home prices are very high relative to rents, you want flexibility, or you can invest the down payment for higher returns. Check the Cost of Living Calculator to compare housing costs across cities.

Frequently Asked Questions

It depends on your situation, particularly how long you plan to stay. In most markets, buying becomes cheaper than renting after 5–7 years due to equity building. But in high-cost markets, the break-even can be 10+ years. Use this calculator with your specific numbers.
Generally, 5–7 years is the minimum. Closing costs (typically 3% of home price), moving expenses, and slow equity building in early years mean buying is expensive short-term. If you might move within 3 years, renting is almost always better financially.
The break-even point is when the total cost of buying (including mortgage, taxes, maintenance, minus equity) equals the total cost of renting. This calculator shows your exact break-even year based on your inputs.
It depends on your financial readiness, local market conditions, and plans to stay. Key factors: Can you afford 20% down? Is your debt-to-income ratio under 36%? Will you stay 5+ years? Do you have 6 months emergency fund? If yes to all, buying may make sense.
20% is ideal as it avoids Private Mortgage Insurance (PMI), which adds 0.5–1% of the loan annually. However, FHA loans allow as little as 3.5% down. Use this calculator to see how different down payment amounts affect total costs.
Historically, yes — home appreciation averages 3–4% annually, and each mortgage payment builds equity. However, homeownership has costs (maintenance, taxes, insurance) that renters avoid. The wealth-building benefit depends heavily on how long you own and your local market.

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Disclaimer: This calculator provides estimates for educational purposes only and is not financial, tax, or legal advice. Results depend on the numbers you enter and the assumptions described above. For decisions about your specific situation, consult a qualified professional.