🔢 Calculator
Rent vs Buy Calculator
Enter your monthly rent, the home price you're considering, and how long you plan to stay to see which option builds more wealth over time.
The Real Rent vs Buy Decision
The financial comparison is only part of the decision. Buying makes sense when you plan to stay 5+ years, want stability, and can afford the true total cost (not just the mortgage). Renting makes sense when you value flexibility, don't want maintenance responsibility, or live in an expensive market where price-to-rent ratios are extreme (San Francisco, NYC). The often-ignored factor: renters who invest the difference between renting and buying costs can build significant wealth through the stock market, which has historically returned 10% annually before inflation.
Frequently Asked Questions
When does buying beat renting?
In most markets, buying becomes cheaper than renting after 5-7 years. The key factors are how long you stay (longer = buying wins), local price-to-rent ratios, mortgage rates, and home appreciation. If you plan to move within 3 years, renting almost always wins due to closing costs and realtor fees.
What costs does this calculator include for buying?
Monthly mortgage payment (principal + interest), property taxes (~1.2% of home value), homeowners insurance (~0.5%), maintenance (~1%), and a 6% selling cost when you eventually sell. It does not include PMI (if under 20% down), HOA fees, or renovation costs, which would make buying more expensive.
What about the tax benefits of owning?
The mortgage interest deduction only helps if you itemize deductions (exceeding the $14,600 standard deduction for singles / $29,200 for couples in 2026). Most homeowners with smaller mortgages don't benefit. The real tax advantage comes from the $250K/$500K capital gains exclusion when you sell your primary residence.
