Rent vs Buy Calculator
Compare the true financial costs of renting versus buying a home over time. Make an informed decision based on your situation.
Rent & Investment
Results Comparison
Renting
Net Worth at End
$0
Monthly Cost (Initial)
$0
Total Rent Paid
$0
Investment Value
$0
Investment Gains
$0
Buying
Net Worth at End
$0
Monthly Cost (Initial)
$0
Total Payments
$0
Home Equity
$0
Home Appreciation
$0
Net Worth Difference
$0
Break-Even Year
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Monthly P&I Payment
$0
Down Payment
$0
Recommendation
Enter your details above to see a personalized recommendation based on your situation.
Net Worth Over Time
Frequently Asked Questions
The decision depends on several factors: how long you plan to stay (buying typically makes sense after 5-7 years), your financial stability, local market conditions, and your personal preferences. Use this calculator to compare the financial outcomes based on your specific situation, including home appreciation, investment returns, and total costs over time.
The break-even point is when the total cost of buying equals the total cost of renting. This typically occurs between 3-7 years depending on factors like home price, down payment, mortgage rates, rent costs, and appreciation rates. After the break-even point, buying usually becomes more financially advantageous.
Homeownership costs include: mortgage principal and interest, property taxes (typically 0.5-2.5% of home value annually), homeowner's insurance, HOA fees if applicable, maintenance and repairs (typically 1-2% of home value annually), and potential PMI if your down payment is less than 20%.
Home appreciation is a critical factor. Historically, U.S. home prices have appreciated 3-4% annually on average, though this varies significantly by location and time period. Higher appreciation rates favor buying, while flat or declining markets may favor renting. This calculator factors in appreciation when calculating your net worth from buying.