Should You Rent or Buy?

Calculate the true cost of renting versus buying a home. Make an informed decision based on your unique financial situation.

50+
US Cities
100%
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Rent or Buy Today

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Your Scenario

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$
%
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7 years
1 years30 years

Explore Scenarios

Adjust these sliders to see how different assumptions affect your decision.

Mortgage Rate7.00%
5%7%9%
Home Appreciation3.0%
0%3%5%
Rent Growth3.0%
0%3%6%
Time Horizon7 years
35710

💡 Tips

  • • Higher mortgage rates favor renting
  • • Higher home appreciation favors buying
  • • Higher rent growth favors buying
  • • Longer time horizons typically favor buying
⚖️It's a Toss-Up

You could save $2,706 by buying

Over 7 years

Monthly Cost (Rent)
$2,189
Average
Monthly Cost (Own)
$3,095
Average (excl. equity)
Total Rent Paid
$183,899
Total Owner Costs
$351,954
Final Equity
$170,761
After selling costs
Break-Even Year
Year 7
Within horizon

Upfront Costs to Buy

Down Payment (20%)$80,000
Closing Costs (3%)$12,000
Total Needed$92,000

Cost Comparison Over Time

$351,954$281,563$211,172$140,782$70,391$00y1y2y3y4y5y6y7y
Total Rent Paid
Total Owner Costs
Net Cost (After Equity)

Explore by City

Get pre-calculated scenarios for major US metros with local market data.

How It Works

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1. Enter Your Scenario

Input home price, rent, mortgage rate, and other details for your situation.

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2. See the Analysis

Get instant calculations showing total costs, equity buildup, and break-even points.

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3. Make Your Decision

Use sensitivity controls to explore scenarios and share your analysis.

Frequently Asked Questions

How accurate is this calculator?

Our calculator uses standard financial formulas for mortgage amortization, property costs, and investment returns. However, actual results will vary based on market conditions, tax situations, and individual circumstances. This tool is for educational purposes and should not replace professional financial advice.

What costs are included in the calculation?

For buying: mortgage payments (principal & interest), property taxes, homeowners insurance, HOA fees, maintenance, closing costs, and selling costs. For renting: monthly rent with optional annual increases.

Why does the time horizon matter?

Buying a home has significant upfront costs (down payment, closing costs). These costs need time to be offset by equity buildup and potential appreciation. Generally, longer time horizons favor buying, while shorter horizons favor renting.