Rent vs. Buy Calculator
Should you rent or buy? This calculator compares the total cost of renting versus buying a home over your expected time horizon, accounting for mortgage payments, home appreciation, property taxes, maintenance, and closing costs.
The rent vs. buy decision is one of the biggest financial choices you will make. While buying builds equity and offers potential appreciation, it also comes with significant costs that renters avoid: property taxes, maintenance, insurance, and closing costs.
The break-even point is the key factor. In many markets, you need to stay in a home for 5-7 years before buying becomes more cost-effective than renting, primarily because of closing costs (3-6% to buy, 5-6% to sell). If you plan to move sooner, renting is often the better financial choice.
This calculator assumes a 30-year fixed mortgage, 3% annual rent increases, and approximately 2.5% of the home value per year in property taxes, insurance, and maintenance. Actual costs vary significantly by location. The analysis also accounts for home appreciation, which can be the single biggest factor in making homeownership financially worthwhile over the long term.