Rent vs Buy Calculator
Compare the total cost of renting vs buying a home over time. Enter rent, home price, down payment, and investment returns to make the right decision.
The rent vs buy decision is one of the most consequential financial choices you'll make. The "right" answer depends on how long you plan to stay, local market conditions, and what you'd do with a down payment if you kept it invested.
The hidden costs of buying
- Closing costs: 2–5% of purchase price upfront
- Property taxes: typically 1–2% of home value annually
- Maintenance: budget 1–2% of home value per year
- HOA fees: $200–$600/month in many communities
- Opportunity cost: the down payment invested in equities historically returns 7–10%/year
The break-even timeline
Due to high transaction costs (agent commissions, closing costs), you typically need to stay in a home 5–7 years before buying beats renting in most US markets. In high-cost cities like NYC or SF, this break-even can extend to 10+ years.
When buying clearly wins
- You plan to stay 7+ years
- Local price-to-rent ratio is below 15
- You value stability, customization, and building equity
- Mortgage + taxes + insurance is less than 30% of gross income