🏡 Rent vs Buy Calculator

The rent vs buy calculator helps you decide whether renting or buying a home makes more financial sense in your situation. It accounts for mortgage payments, property taxes, maintenance, home appreciation, rent increases, and the opportunity cost of a down payment to find your break-even point.

🇺🇸 Calculating for United States

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Buying

Home price (USD)

Down payment (%)

Mortgage rate (%)

Loan term (years)

Home appreciation (%/yr)

Renting

Monthly rent (USD)

Annual rent increase (%)

Compare over (years)

After 10 years…

🏠 Buying is better by $119,195.70

Break-even at year 1

Total rent paid

$275,133.10

Total buy cost

$446,882.97

Home equity built

$290,945.57

Net buy advantage

$119,195.70

Assumes 3.5% home appreciation, 3% annual rent increase. Excludes opportunity cost of down payment invested.

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Frequently asked questions

Is it better to rent or buy a home?▾

It depends on your local market, how long you plan to stay, and your financial situation. Buying generally makes more sense if you plan to stay 5+ years, have a stable income, and the price-to-rent ratio is favorable.

What is the price-to-rent ratio?▾

Divide the home price by annual rent. A ratio below 15 favors buying; above 20 generally favors renting. Many expensive cities have ratios above 30, making renting financially smarter.

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Disclaimer: This calculator is for informational and educational purposes only. Results are estimates and not financial advice. Consult a licensed financial advisor before making financial decisions.