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Rent vs. Buy Calculator

Should you rent or buy? This calculator compares the real net cost of each over the years you plan to stay — counting home equity, appreciation, and the returns you'd earn by renting and investing the difference.

Compares the true net cost of renting vs. buying — counting home equity, appreciation, and the investment return you'd earn by renting and investing the difference.

Renting
$
Buying
$
$
$
Assumptions
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Net cost of buying
$0
Net cost of renting
$0
Break-even point
—
Home value when you sell
$0

"Net cost" = everything you spend minus what you get back (home equity for buying; investment gains for renting). Lower is better. A simplified model — taxes on gains and rent specifics vary.

How the rent vs. buy calculator works

Renting isn't "throwing money away," and buying isn't automatically smarter — the honest answer depends on the math. The calculator runs a month-by-month simulation of both paths over the years you plan to stay. For buying, it totals every dollar you spend (down payment, closing costs, mortgage, taxes, insurance, maintenance, HOA) and subtracts the equity you'd walk away with after selling. For renting, it totals your rent and subtracts the investment gains you'd earn by investing the money you didn't tie up in a house.

The break-even point is the key number

Because buying carries large upfront and exit costs, it usually loses over short horizons and wins over long ones. The break-even year is where buying becomes the cheaper choice. If you expect to move before then, renting often comes out ahead.

The assumptions that move the answer most

  • How long you stay — the single biggest factor.
  • Investment return — a higher return makes renting-and-investing more competitive.
  • Home appreciation and rent growth — small changes compound over time.

If buying looks right, estimate your payment with the Mortgage Calculator and your budget with the Home Affordability Calculator. For the full picture, read How Much House Can I Afford?

Frequently asked questions

Is it cheaper to rent or buy?
It depends on how long you stay, your local prices, rent, and what return you could earn by investing instead. Buying has big upfront and exit costs (closing and selling fees), so it usually only wins if you stay long enough. This calculator finds the break-even point for your specific numbers.
What is the break-even point on buying a home?
It's the number of years you'd need to stay for buying to become cheaper than renting and investing the difference. Below that point, the upfront and selling costs of owning outweigh the equity you build; above it, ownership typically pulls ahead.
Does this calculator include tax benefits?
No — it's a simplified model and doesn't include the mortgage-interest deduction, capital-gains rules, or the specifics of your tax situation, all of which can shift the answer. Treat the result as a directional estimate and consider a tax professional for your case.

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