Enter your numbers to see the true 10- and 30-year cost of buying versus renting — including break-even year, equity built, and net worth impact.
The rent vs. buy decision is one of the biggest financial choices you'll make. This calculator factors in mortgage payments, property taxes, insurance, home appreciation, opportunity cost of your down payment, and rising rents to give you an honest, side-by-side comparison — not just a simple monthly payment estimate.
| Year | Cumulative Buy Cost | Cumulative Rent Cost | Home Value | Equity | Buy Net Position | Rent Net Position |
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Most rent vs. buy comparisons stop at comparing monthly rent to a mortgage payment — and that misses most of the story. This calculator accounts for the full picture:
Financial advisors traditionally say housing costs should not exceed 30% of gross income. Renters typically have lower total housing costs than buyers in the short term, but they build no equity. Buyers, on the other hand, are forced to save through mortgage paydown — often the single largest wealth-building mechanism for middle-class Americans.
Renting is often the better choice if you plan to stay fewer than 3–5 years (transaction costs eat into gains), if home prices are elevated relative to rents (high price-to-rent ratios), or if you have high-interest debt that should be paid first. In some expensive coastal markets, renting and investing the difference genuinely outperforms buying for many years.
Buying makes more financial sense when you plan to stay 5+ years, when mortgage payments are close to or below area rents, when local appreciation is consistent, and when you value stability and the ability to customize your home. The tax deduction for mortgage interest, while less impactful since the 2017 tax law increased the standard deduction, still benefits high earners in expensive markets who itemize.
This calculator does not include the 5–6% real estate agent commissions paid at sale, or the 2–3% closing costs paid at purchase. For short holds, these alone can wipe out several years of appreciation gains — which is why the break-even timeline is so critical.
It depends heavily on your local market. With mortgage rates still elevated compared to 2020–2021 lows, monthly payments are higher than they were. In many markets, renting is cheaper month-to-month, but buyers build equity and hedge against future rent increases. Run the numbers for your specific situation — the answer varies dramatically by city.
The general rule of thumb is 5 years, but it depends on your market. High-appreciation markets may break even sooner; stagnant markets may take 7–10 years. This calculator shows your specific break-even year based on real inputs.
If you put $70,000 down on a home instead of investing it, you give up the returns that money would have earned. This calculator assumes a 7% annual return on invested down payment as the renter's "investment" — a common proxy for long-run stock market returns.
Since the Tax Cuts and Jobs Act of 2017 doubled the standard deduction, fewer homeowners itemize. The deduction matters most for those with large mortgages in high-tax states who do itemize. Enter 0% in the tax rate field if you take the standard deduction.
Yes — this calculator does not include maintenance, which typically runs 1–2% of home value per year. For a $350,000 home, that's $3,500–$7,000 annually. Renters rarely pay maintenance costs. To be more conservative, mentally add 1% of your home price annually to the "buy" cost.