Buying

Total Cost

—

over — years

Home Equity

—

net after sale

Renting

Total Cost

—

over — years

Investment Growth

—

if down payment invested

🏠 Buying

Home Price

Down Payment

Mortgage Rate

Loan Term

Property Tax / yr

HOA / month

Maintenance / yr

Closing Costs

🏠 Renting

Monthly Rent

Rent Increase / yr

Renter's Insurance / mo

Shared Assumptions

Time Horizon

years10 yrs

130

Home Appreciation

annual4.0%

0%10%

Investment Return

if renting7.0%

2%12%

🏠

Calculating…

Adjust the inputs above and hit Compare.

🏠 Buying Costs

Mortgage Payments—

Property Tax—

Maintenance—

HOA—

Closing Costs—

Less: Equity Built—

Net True Cost—

🏠 Renting Costs

Total Rent Paid—

Renter's Insurance—

Down Payment Cost—

Less: Investment Growth—

Net True Cost—

Cumulative Cost by Year (Buy vs Rent)

Buy net cost Rent net cost

Year-by-Year Comparison ▼

Year	Buy Cost	Home Value	Equity	Rent Cost	Invest Value

This calculator estimates financial costs only and does not account for intangible benefits of homeownership (stability, customization) or renting (flexibility, mobility). Actual results depend on local market conditions, tax situation, and individual circumstances. Not financial advice.

Rent vs Buy — Complete Guide 2026

The rent vs buy decision is one of the biggest financial choices you'll make. The answer depends on your local market, how long you plan to stay, and what you'd do with the down payment if you rented instead.

Hidden Costs of Buying Most People Forget

Closing costs (2–5%): On a $450K home, that's $9K–$22K upfront just to close
Maintenance (1–2%/yr): Budget $4,500–$9,000/year on a $450K home — roof, HVAC, plumbing
Opportunity cost: A $90K down payment invested at 7%/yr = $177K after 10 years
Property tax: Typically 0.5–2.5% of home value per year depending on state
Selling costs (5–6%): Agent commissions eat into your gains when you sell

When Buying Usually Wins

You plan to stay 7+ years (breaks even on closing costs, builds equity)
Local price-to-rent ratio is below 15 (home price ÷ annual rent)
Home appreciation is strong in your market (3%+ per year)
You value stability and want to customize your home

When Renting Usually Wins

You plan to move in under 5 years
Local price-to-rent ratio is above 20
You could invest the down payment at a higher return than home appreciation
High property taxes or HOA fees in your area

What is the price-to-rent ratio and how do I use it?+

Price-to-rent ratio = home price ÷ annual rent. Example: $450,000 home, $2,200/month rent = $26,400/year. Ratio = 450,000 ÷ 26,400 = 17. Below 15 = buying favored. 15–20 = toss-up. Above 20 = renting often better. San Francisco, NYC, and LA often have ratios of 30–40.

Does the mortgage interest deduction change the math?+

Only if you itemize deductions, which fewer than 12% of filers do since the 2018 tax law doubled the standard deduction. The standard deduction in 2026 is $15,000 (single) / $30,000 (MFJ). You'd need very high mortgage interest + other deductions to beat itemizing. For most people, the deduction doesn't significantly change the rent vs buy math.

How long do I need to stay for buying to make sense?+

The break-even point is typically 5–7 years in most US markets. Closing costs (3–5%) + selling costs (5–6%) = ~10% of the home price you need to recoup. With 3–4% annual appreciation, that takes about 5–7 years. In high-appreciation markets like Austin or Miami, break-even can be 3–4 years. In low-appreciation markets, it can be 10+ years.

📌 Live Summary

Buy net cost—

Rent net cost—

Winner—

Monthly mortgage—

Home value at end—

Equity built—

💡 Key Rules of Thumb

→Price-to-rent <15 → buy. >20 → rent. 15–20 → use this calc

→Plan to stay <5 years? Renting almost always wins

→Don't forget 1–2%/yr maintenance — it adds up fast

→Selling costs ~5–6% wipe out 1–2 years of appreciation