Rent vs. Buy Calculator
Compare the true cost of renting versus buying a home over time. Factor in equity, appreciation, taxes, and maintenance to find your break-even point.
Rent vs. Buy Calculator
Should You Rent or Buy?
The answer depends on your local market, how long you plan to stay, and your financial situation. This calculator compares total costs over time, including equity you build as a homeowner. Adjust the inputs below to model your specific scenario.
Rental Costs
$1,800
$500$5,000
3%
1%5%
Home Purchase Details
$350,000
$100K$1M
10% ($35,000)
0%30%
Below 20% requires Private Mortgage Insurance (PMI) — approximately $131/mo
6.5%
3%10%
3.5%
1%8%
Comparison Period
7 years
1 year30 years
Buying saves $41,871
Over 7 years
Break-even point
Year 3
Buying becomes cheaper than renting after 3 years
Cost Comparison
Total Rent Paid$165,509
7 years of rent with 3% annual increases
Net Cost of Buying$123,638
Total paid minus equity built ($160,487 in equity)
Ownership Breakdown
Down Payment$35,000
Closing Costs (est. 3%)$10,500
Total Ownership Costs$284,125
Home Equity Built-$160,487
Net Cost of Ownership$123,638
Monthly Mortgage (P&I)$1,991/mo
Key Assumptions
30-year fixed-rate mortgage
Property tax: 1.1% of home value annually
Homeowner's insurance: 0.35% of home value annually
Maintenance: 1% of home value annually
PMI: 0.5% of loan balance (if down payment < 20%)
Closing costs: 3% of purchase price (one-time)
Does not include tax deductions for mortgage interest
Does not include opportunity cost of down payment investment
Renter's insurance not included (typically $15-30/mo)
Selling costs (agent commissions, typically 4-5%) not included
