Rent vs. Buy Calculator
Compare the true cost of renting against buying over the years you plan to stay — including equity you build and the rough break-even point.
Over 7 years, buying comes out ahead
$16,396
Estimated net savings from owning, after counting the equity you'd walk away with.
Total Cost Over 7 Years
| Total spent renting | $202,289 |
| Upfront cost to buy (down + closing) | $52,000 |
| Total paid out as owner (gross) | $322,827 |
| Equity recovered at sale | −$136,934 |
| Net cost of buying | $185,893 |
Break-Even Point
Buying becomes the cheaper option at roughly year 6. If you expect to move before then, renting likely wins. If you'll stay longer, the math tilts toward buying.
The Assumptions Behind These Numbers
Rent vs. buy is genuinely close, and the answer swings hard on a few inputs. So here's exactly what this calculator assumes — tweak the inputs above to match your market.
- ✓ 30-year fixed mortgage; principal & interest are fixed for the whole stay.
- ✓ Property tax 1.1%, homeowners insurance 0.5%, maintenance 1.0% of home value per year.
- ✓ Upfront buying costs of 3% of price; selling costs of 6% when you exit.
- ✓ Rent grows at your chosen rate each year; home value grows at your appreciation rate.
- ✓ For simplicity it ignores tax deductions and the return you'd earn investing a renter's saved down payment.
New to the process? Start with our first-time homebuyer cost guide, then pressure-test a purchase price in the home affordability calculator.
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Frequently Asked Questions
Is it cheaper to rent or buy?
It depends almost entirely on how long you stay. Buying carries big upfront and selling costs, so a short stay favors renting. The longer you own, the more those one-time costs get spread out and the more equity you build, which usually tips the scale toward buying.
What is the break-even point?
It's the year when the total net cost of owning finally drops below the total cost of renting. Before that year, renting is cheaper; after it, owning pulls ahead. For many U.S. markets it lands somewhere in the 4–8 year range.
Does this account for home appreciation?
Yes. The home grows at the appreciation rate you set, which raises both your sale price and your tax/insurance/maintenance costs. The equity you recover at sale is netted against everything you paid, so appreciation directly affects the verdict.
Why does renting sometimes win even long-term?
When prices are very high relative to rent, when appreciation is low, or when interest rates are steep, the carrying cost of owning can outrun the equity you build. In those markets a disciplined renter who invests the difference can come out ahead.
Is this a substitute for financial advice?
No. This is an estimate using simplified, transparent assumptions. It leaves out things like tax deductions and investment returns on a renter's savings. Use it to frame the decision, then confirm the specifics with a lender or financial advisor.