🏠 Rent vs Buy Calculator
Compare the true cost of renting vs buying over 5, 10, and 15 years — including equity buildup, opportunity cost, and your break-even year.
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Rent vs Buy Analysis
Enter your home purchase details and current rent
🏡 Buying Scenario
🏢 Renting Scenario
What you'd earn investing the down payment instead
Rent vs Buy Results
Break-Even Year
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5-Year Net Cost: Buy
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5-Year Net Cost: Rent
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10-Year Winner
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Year-by-Year Comparison
YearBuy Net CostRent Net CostDifference
How This Calculator Works
The rent vs buy decision is more than just monthly payment. This tool calculates the true total cost of each path including equity buildup, opportunity cost, and appreciation.
Buy: True Net Cost
Mortgage interest + taxes + insurance + maintenance − equity gained − appreciation. Shows real economic cost after building wealth.
Rent: True Net Cost
Rent payments + renters insurance − investment gains on the down payment. Shows economic cost of renting while investing.
Frequently Asked Questions
When does buying beat renting?
Buying typically beats renting after 5–7 years in most U.S. markets when you factor in equity buildup and appreciation. High-cost cities (NYC, SF) can have break-even points of 10+ years. This calculator shows your specific break-even point.
What costs does buying include?
This calculator includes down payment opportunity cost, mortgage interest, property taxes, homeowners insurance, maintenance (estimated at 1% of home value/yr by default), and transaction costs. It credits equity buildup and home appreciation against these costs.
Why include investment return for renters?
When you rent instead of buying, you keep your down payment. If invested in index funds (historically ~7% annual return), that capital grows. This is the opportunity cost of tying up a down payment in a home.