Rent vs Buy Analyzer
Get an honest, numbers-based answer to the rent vs buy question. We'll factor in appreciation, rent increases, taxes, maintenance, and the equity you'd build.
What this calculator considers
Mortgage P&I
Monthly principal + interest
Property taxes
~1.2% annually
Homeowners insurance
~0.5% annually
Maintenance & repairs
~1% annually
Home appreciation
Configurable annual rate
Rent increases
Configurable annual rate
Equity built
From payments + appreciation
Break-even year
When buying becomes cheaper
How It Works
Enter rent & home price
Input your current rent and the price of a home you'd consider buying.
Set assumptions
Adjust expected home appreciation, investment returns, and how long you'll stay.
See the 5 and 10-year verdict
Get a clear comparison of total cost of renting vs buying over your time horizon.
Rent vs Buy: 5-Year Snapshot ($400k Home, $2,000/mo Rent)
| Cost Item | Buying | Renting |
|---|---|---|
| Down payment | $80,000 | $0 |
| Monthly payments (5yr) | $119,400 | $120,000 |
| Maintenance & tax | $36,000 | $0 |
| Equity gained | -$42,000 | $0 |
| Net cost | $193,400 | $120,000 |
Buying often wins after 7+ years due to equity. Shorter timeframes usually favor renting.
Frequently asked questions
How long before buying a home is cheaper than renting?
The break-even point depends on your local market, down payment, and appreciation rate. Nationally, buyers typically break even after 3–7 years. In high-cost cities, it can take 10+ years. The longer you stay, the more buying tends to win financially.
What hidden costs of homeownership does this calculator include?
This calculator includes property taxes (1.2% annually), homeowners insurance (0.5% annually), and maintenance (1% annually) — costs renters don't pay directly. These can add thousands per year and significantly affect whether buying makes financial sense.
Should I buy if I'm not sure I'll stay 5 years?
Probably not. Closing costs and transaction fees when selling (agent commissions, transfer taxes) typically run 6–10% of the home value. You need enough appreciation and equity growth to offset those costs. Under 3–5 years, renting is usually cheaper.
What if home prices drop after I buy?
A home price drop extends your break-even point and reduces the financial case for buying. This calculator lets you set appreciation to 0% or even negative to model this scenario. Buying primarily for personal reasons (stability, renovation freedom) can still make sense even if pure financial returns are uncertain.
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