Rent vs. Buy Calculator (Updated)
Compare the true cost of renting vs. buying over time with appreciation, rent increases, mortgage paydown, and equity building. The most comprehensive rent vs. buy calculator online.
Rent vs. Buy Calculator (Updated)
Compare the true cost of renting vs. buying over time
Buying is ~$115,702 cheaper over 10 years (net of equity).
Includes mortgage payments, property taxes, insurance, maintenance, and equity from appreciation and paydown. Rent increases annually. Does not include: mortgage interest deduction, closing costs, PMI, HOA, or opportunity cost of down payment investment. Results are estimates for educational purposes.
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Frequently Asked Questions
What is the 5-year rule for renting vs. buying?+
Generally, buying is better if you plan to stay 5+ years. The break-even point typically falls at 3-7 years depending on your market. In high-cost areas (SF, NYC): longer break-even. In affordable markets: 2-4 years. This calculator shows your exact break-even.
What costs do people forget when buying a home?+
Hidden costs: property taxes (1-3%/yr), maintenance (1%/yr), insurance ($1,200-3,000/yr), closing costs (2-5% of price), opportunity cost of down payment, and HOA fees. These add $800-2,000/month to the true cost of owning a $400K home.
Does buying always build more wealth than renting?+
Not always. If you invest the difference (down payment + monthly savings from renting cheaper) in index funds returning 7-10%, it can outperform home equity in some scenarios. The math depends on your local rent-to-price ratio, mortgage rate, and investment returns.
What is the 5-year rule for renting vs. buying?
Generally, buying is better if you plan to stay 5+ years. The break-even point typically falls at 3-7 years depending on your market. In high-cost areas (SF, NYC): longer break-even. In affordable markets: 2-4 years. This calculator shows your exact break-even.
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