Rent vs Buy Calculator

The calculator compares the total net cost of renting vs buying over your chosen time period. For buying, it accounts for mortgage payments, property tax, insurance, and maintenance, but credits you with equity buildup and home appreciation. For renting, it accounts for rent increases and credits you with investment returns on the money you would have spent on a down payment and the monthly difference.

The break-even point is the year when the cumulative net cost of buying drops below renting. Before this point, renting is cheaper. After it, buying pulls ahead as you build equity and benefit from appreciation while rent keeps rising. Many markets have a break-even around 5-7 years.

A 20% down payment avoids Private Mortgage Insurance (PMI), which typically costs 0.5-1% of the loan amount annually. However, putting less down lets you invest the difference. Our calculator helps you see the trade-off. If you can earn more investing than PMI costs, a smaller down payment may make sense.

This calculator doesn't account for closing costs (typically 2-5% of home price), PMI for down payments under 20%, HOA fees, moving costs, renovation expenses, or the tax benefits of mortgage interest deduction. It also doesn't capture the non-financial value of homeownership like stability and customization freedom.