Finance
Rent vs Buy Calculator
Compare the total cost of renting vs. buying a home over time
FAQs
Is it better to rent or buy?
It depends on your local market, how long you plan to stay, and your financial situation. Generally, buying is better if you stay 5-7+ years, as equity growth usually offsets high transaction costs.
What is the break-even year?
The break-even year is the point when the total cost of buying (including closing costs and maintenance) becomes lower than the cumulative cost of renting.
What costs should I consider when buying?
Beyond the mortgage, consider property taxes, home insurance, maintenance (typically 1% of home value/yr), closing costs (2-5% of price), and future selling costs.
How to Use the Rent vs Buy Calculator
Compare the long-term cost of renting against buying a home.
- Enter the home price, down payment, and mortgage rate.
- Enter your current rent.
- Enter how long you plan to stay.
- Compare total costs and the break-even point.
Real-World Use Cases
Relocation Decisions
Decide whether to buy when moving to a new city.
Short vs Long Stays
Buying usually wins only past a break-even number of years.
Tips
Tips
- Include property tax, insurance, and maintenance, not just the mortgage.
- Renting can win if you'll move within a few years.