Rent vs Buy Calculator

Rent vs. Buy: The Real Financial Picture

The rent vs. buy decision is one of the most important financial choices most people make. There's no universal right answer — it depends on your local market, how long you'll stay, your financial situation, and interest rates. This free calculator cuts through the noise with real numbers.

When Buying Wins

Buying typically becomes financially advantageous after 5–7 years in most markets. You build equity with every payment, benefit from home price appreciation, and eventually eliminate your housing payment entirely. Historically, US home values have risen about 3–4% annually — outpacing inflation.

When Renting Wins

Renting often makes more sense if you'll move in under 4–5 years, live in a high price-to-rent ratio city (like NYC or SF), or if the down payment could earn better returns invested elsewhere. With mortgage rates at 7%+, the monthly cost of ownership exceeds renting in many major metros.

Hidden Costs of Homeownership

Budget for property taxes (1–2% of value/year), homeowner's insurance (~$150/month), maintenance and repairs (1% of value/year), HOA fees, and closing costs (2–5% of purchase price). These add $500–$1,500/month to a $400,000 home beyond the mortgage payment.