Rent vs. Buy Calculator
Decide whether it is financially better to rent or buy a home over time
The decision to rent or buy is one of the biggest financial choices you will make. It depends not just on monthly payments, but on how long you stay, home appreciation, and the opportunity cost of your down payment.
Calculator Inputs
Cost of a comparable rental
Annual growth in home value
Results
Enter values above to see your results
How It Works
This calculator compares the total sunk costs of buying (mortgage interest, taxes, maintenance, closing costs) against the total sunk costs of renting (rent payments, insurance). It also factors in the equity you build when buying.
Tips & Best Practices
- •Buying usually makes sense if you plan to stay in the home for at least 5-7 years.
- •Don't forget maintenance costs - usually 1% of the home value per year.
- •Renting offers flexibility and freedom from repair bills, which has its own value.
- •Consider the "opportunity cost" - could your down payment earn more in the stock market?
Frequently Asked Questions
What is the break-even point?
The break-even point is the year where the total cost of buying becomes lower than the total cost of renting. Before this point, renting is cheaper due to high upfront buying costs.
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