Rent vs. Buy Calculator
Compare the true total cost of renting versus buying over a 5-year period.
🏠 Buying
🏢 Renting
Results
This is a simplified comparison. Tax deductions, capital gains exclusions, and local market conditions are not included. Consult a financial advisor for personalized guidance.
How the Rent vs. Buy Calculation Works
This calculator compares the true out-of-pocket cost of each option over your selected period. For buying, it accounts for mortgage interest paid, property taxes, insurance, maintenance, buying and selling closing costs, and offsets the equity built and home appreciation. For renting, it includes total rent paid and renter's insurance, while crediting the investment return you could earn on the down payment you kept invested.
The result is a total net cost for each path — which one is lower depends heavily on how long you stay, the local appreciation rate, your mortgage rate, and current rent levels.
The Break-Even Timeline
Buying almost always becomes advantageous over renting — eventually. The key is the break-even period: how many years before buying's cumulative advantages (equity, appreciation, fixed payments) outweigh its high upfront costs (closing costs, down payment opportunity cost). In most markets, this break-even falls between 4–8 years. If you plan to stay longer than your break-even period, buying is generally the better financial decision.