Rent vs Buy Calculator
Should you rent or buy a home? Compare the true, all-in cost of each over time — mortgage, taxes, maintenance, rent increases, equity build-up, and the opportunity cost of your down payment. See your break-even year and get a clear answer for your numbers. Works in any currency.
Enter the home you'd buy and the rent you'd pay instead, then fine-tune the assumptions. The calculator compares total costs over your time horizon and tells you the year buying becomes cheaper than renting.
* This calculator compares estimated total costs using standard assumptions and the figures you enter. It models the down-payment opportunity cost (what that money could earn if invested instead) and counts home equity, minus selling costs, as money you get back. Real outcomes depend on the housing market, your tax situation, fees, and how long you actually stay. This is general information for planning only and is not financial, tax, or legal advice — confirm the numbers with a qualified professional before making a decision.
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What Is a Rent vs Buy Calculator?
A rent vs buy calculator is a free tool that answers one of the biggest money questions there is: should I rent or buy a home? Instead of comparing a monthly rent to a monthly mortgage payment — which is misleading — it adds up the true, all-in cost of each path over the years you plan to stay, then tells you which one leaves you better off and the exact break-even year when buying overtakes renting.
Buying isn't just a mortgage payment. It includes the down payment, closing costs, property tax, insurance, maintenance, and the opportunity cost of tying up your cash — offset by the equity you build and the appreciation you keep when you sell. Renting isn't just rent, either: it usually rises every year, but it frees up your savings to invest. This calculator weighs all of it so you can decide with numbers, not gut feel.
How to Use the Rent vs Buy Calculator
- Enter the home price you'd buy and your down payment.
- Add the mortgage rate and term — the 2026 default is around 6.22%.
- Enter the monthly rent for a comparable place, plus expected yearly rent increases.
- Set how long you'll stay — this is the single most important input.
- Open Advanced Options to fine-tune taxes, maintenance, appreciation, and investment return.
Click Compare Rent vs Buy to see total costs, your break-even year, and a full year-by-year table.
How the Comparison Works
The calculator tracks two running totals over your time horizon:
+ property tax + insurance + maintenance + HOA
− home equity at sale (after selling costs)
+ opportunity cost of the down payment
Cost to Rent = all rent paid (rising each year)
− investment growth on money not spent on a down payment
Whichever total is lower is the cheaper option for your time horizon. The break-even year is the point where the cumulative cost of buying drops below renting.
The Break-Even Point: The Number That Matters Most
The break-even year is the heart of the rent-vs-buy decision. Before it, renting is cheaper — buying carries heavy upfront costs (down payment, closing fees) that take years to recover. After it, buying pulls ahead as you build equity and rent keeps compounding upward. The practical rule: if you'll move before the break-even year, renting usually wins; if you'll stay past it, buying usually wins. This is why a two-year stay and a ten-year stay can give opposite answers on the very same home.
Rent vs Buy in 2026
The math has shifted. With mortgage rates near 6.22% and home prices high, buying can cost noticeably more per month than renting in many markets — yet buying still builds equity and locks in your housing cost while rent climbs every year. There's no universal answer: expensive coastal cities often favour renting, while many inland markets favour buying. Your timeline, your local prices, and your rate decide it — which is exactly what this calculator is for.
When Renting Usually Makes More Sense
- You'll move within a few years — not enough time to recover buying costs.
- You want flexibility — job changes, travel, or uncertain plans.
- Prices are very high relative to rents in your area.
- You'd invest the difference and earn a strong return elsewhere.
- You don't want maintenance costs or the responsibility of ownership.
When Buying Usually Makes More Sense
- You'll stay long enough to pass the break-even year.
- You want stable, predictable housing costs instead of rising rent.
- You value building equity rather than paying a landlord's.
- Rents are high relative to home prices in your area.
- You're ready for the upkeep and want to make the place your own.