Rent vs. Buy Calculator
The real comparison goes beyond monthly payment. This calculator accounts for opportunity cost, appreciation, maintenance, tax benefits, and net wealth over time.
Buying Scenario
$
US avg ~1.1%/yr · 0.3–2.5% by state
$
Long-run US avg ~3.8%/yr · use 2% to be conservative
Renting Scenario
$
US median ~3–5%/yr
7% = historical stock real return
Assumptions
Better financial choice after 7 years
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calculating…
Detailed Comparison & Break-Even
Data sources & methodology: Mortgage amortization using standard formula. Property tax applied annually. Maintenance modeled at 1% of home value/yr. Closing costs on purchase (3%) and sale (6%) included. Opportunity cost = down payment invested at stated return. Rent savings invested at same rate. Results are estimates — not financial advice. Disclaimer →
Frequently asked questions
Is renting really throwing money away?
No. Renting buys flexibility and avoids property taxes, maintenance, and large transaction costs. Buying builds equity but ties up a down payment that could otherwise be invested. The honest comparison weighs total costs and opportunity cost on both sides.
How long do I need to stay for buying to beat renting?
The break-even point is commonly 5–8 years, but it shifts with mortgage rates, home appreciation, rent inflation, and how the down payment would otherwise be invested. Below the break-even, renting often wins financially.
What costs do buyers most often forget?
Closing costs, ongoing maintenance (about 1% of value per year), property taxes, insurance, PMI, and the opportunity cost of the cash tied up in the down payment. These are exactly what this calculator includes.
🔒 Calculations run 100% in your browser — we never see your numbers 📊 Built on primary-source data (see sources above) 🔄 Reviewed 2026 · methodology · disclaimer