Rent vs Buy Calculator
Compare renting versus buying a home over time, including appreciation, equity, and total costs.
Results
Visualization
How It Works
The rent vs buy calculator compares the total financial cost of renting versus owning over a specified period. It accounts for mortgage payments, appreciation, taxes, and maintenance.
The Formula
Variables
- Total Rent — Cumulative rent over the period
- Equity Gained — Property appreciation over time
- Net Own Cost — Total ownership costs minus equity
Worked Example
Renting at $2,000/month with 3% increases for 10 years = ~$275,000. Buying $350,000 home: costs ~$410,000 but with 3% appreciation, equity gain of ~$120,000 makes net cost ~$290,000.
Practical Tips
- Buying makes more sense the longer you stay — break-even is typically 5-7 years.
- In high-appreciation markets, buying almost always wins long-term.
- Don't forget opportunity cost of your down payment if invested instead.
- Renting offers flexibility and no maintenance costs.
- Factor in tax benefits of ownership for a complete picture.
Frequently Asked Questions
Is it better to rent or buy in 2026?
With rates around 6.5-7.5%, buying is more expensive monthly. If you plan to stay 5+ years with 20% down, buying typically wins long-term.
How long to stay for buying to make sense?
Generally 5-7 years, but varies by market. In high-appreciation areas, 3-4 years may be enough.
Does this include investment returns on savings?
This basic version doesn't include opportunity cost of investing your down payment. A renter investing the difference could come out ahead in some scenarios.
What about tax benefits?
Mortgage interest and property tax deductions can reduce effective ownership cost by 15-30% for those who itemize.
Should I consider rent-to-own?
Rent-to-own can work if you need time to save or improve credit, but terms often favor the seller.