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Rent vs. Buy Calculator
Results update instantly as you type
🔵 Renting
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🟢 Buying
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Shared assumptions
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Enter your rent and home purchase details above to see the comparison.

How the rent vs. buy calculator works

This calculator compares the true total cost of renting vs. buying over your chosen time period. For renting, it tracks monthly rent payments plus renters insurance, accounting for annual rent increases. For buying, it calculates mortgage payments, property taxes, maintenance, and closing costs — then subtracts the equity you build and home appreciation to get your net cost. The difference tells you which option is financially better over your timeframe.

What is opportunity cost and why does it matter?

When you buy a home, your down payment is tied up in real estate. That same money invested in the stock market could grow at 7–10% annually. This calculator accounts for that "opportunity cost" — the return you give up by using your down payment for a house instead of investing it. This is one of the most overlooked factors in rent vs. buy decisions.

What is the break-even point?

The break-even point is the year at which buying becomes cheaper than renting on a cumulative basis. Before that point, you've spent more on buying (due to closing costs, mortgage interest, and maintenance). After that point, the equity you've built and the appreciation of your home tip the math in favor of buying. In most markets, this is between 4 and 8 years.

When renting makes more sense

When buying makes more sense