Finance
Rent vs. Buy Calculator
The biggest financial decision most people make. Compare the total cost of renting versus buying a home over your expected stay.
Cost of Buying
$20,803
Monthly: $5,152
Cheaper option
Cost of Renting
$183,899
Over 7 years
Down Payment
$80,000
Home Value at Sale
$491,950
Equity After Sale
$491,950
Buying is cheaper over 7 years. The break-even point is approximately year 1.
Frequently asked questions
Is buying always better than renting?
No. Buying is better if you stay long enough to recoup transaction costs and build equity. Renting is often better if you move frequently, have uncertain income, or live in an area where buying is much more expensive than renting.
How long do I need to stay for buying to make sense?
The traditional rule is 5-7 years, but it varies widely by market. This calculator finds your exact break-even year based on your specific numbers. In high-cost areas with low appreciation, it may take 10+ years to break even.
What costs are not included in this comparison?
This comparison excludes maintenance (typically 1-2% of home value annually), homeowners insurance, HOA fees, closing costs when buying (2-5%), and realtor commissions when selling (5-6%). Including these would make buying more expensive.
What about the opportunity cost of the down payment?
The down payment could have been invested in the stock market instead of a home. Historically, stocks have returned 7-10% annually vs. real estate's 3-5%. This calculator doesn't factor in that opportunity cost — consider it when comparing.
Compare the total cost of renting versus buying a home with our free rent vs. buy calculator. Enter the home price, down payment, mortgage rate, property tax, monthly rent, and expected stay to see which option saves you more money.
The calculator accounts for home appreciation, rent increases, mortgage interest, and property taxes to give you an apples-to-apples comparison. Understand the break-even point where buying becomes cheaper than renting.