RENT VS BUY CALCULATOR

Should You Rent or Buy?

Compare the true cost of renting vs. buying over time. Factor in appreciation, tax benefits, and opportunity cost to make the right decision.

5-Year Analysis Total Cost Equity Building

What This Compares

Renting: Total rent paid over time
Buying: Mortgage, taxes, insurance, maintenance, minus equity gained
Opportunity cost: What your down payment could earn if invested

Renting

Current Monthly Rent ($)

Annual Rent Increase (%)

Buying

Home Purchase Price ($)

Down Payment (%)

Mortgage Rate (%)

Property Tax Rate (%)

Home Appreciation (%/yr)

Analysis Period

How long do you plan to stay? (years)

Frequently Asked Questions

Is it better to rent or buy?

Buying is better if you plan to stay 5+ years and can afford the down payment. Renting offers flexibility and avoids maintenance costs. Use our calculator to compare total costs including equity buildup, tax benefits, and opportunity costs.

What hidden costs come with homeownership?

Beyond mortgage payments, budget 1-2% of home value annually for maintenance ($3K-10K), property taxes (0.5-2%), homeowners insurance ($1,000-3,000/year), HOA fees ($200-500/month), and unexpected repairs.

At what point does buying become cheaper than renting?

The break-even point is typically 4-7 years. Before that, closing costs and selling costs eat into equity gains. After the break-even point, buying becomes increasingly advantageous as you build equity and benefit from appreciation.