Result
Buy vs Rent (1–30 years)—
The table below shows the average cost based on how long you stay (up to 30 years).
| Staying Length | Average Buying Cost | Average Renting Cost | ||
|---|---|---|---|---|
| Monthly | Annual | Monthly | Annual | |
Note: This is a simplified financial model for comparison and education. Real outcomes depend on local taxes, insurance, fees, and market conditions.
Should I rent or buy?
This question is personal, but a calculator can help you evaluate it from a financial angle. Our rent vs buy calculator compares the expected cost of renting with the true cost of owning, based on assumptions such as rent growth, home appreciation, taxes, insurance, and opportunity cost. Because no one can predict the future, treat the output as an estimate, not a guarantee.
What this rent vs buy calculator includes
Buying costs
- Mortgage payments (principal and interest)
- Property taxes and potential tax increases
- Home insurance, HOA fees, and maintenance
- Buying and selling closing costs
- Opportunity cost of the down payment and other upfront cash
Renting costs
- Monthly rent and annual rent increases
- Renter's insurance
- Security deposit and upfront moving costs
Understanding break-even years
The break-even point is the minimum time you need to stay in a home for buying to become cheaper than renting. If you move before this point, renting is usually the lower-cost option. Staying longer may favor buying, especially if appreciation and equity growth outweigh ownership costs.
What to expect when buying a home
Buying a home involves both one-time transaction costs and ongoing expenses. Many first-time buyers focus on the monthly mortgage payment but underestimate taxes, insurance, and maintenance. These recurring costs are a major reason why time horizon plays such a critical role in rent vs buy decisions.
The major components of homeownership costs
- Principal: the portion of the payment that builds equity.
- Interest: the cost of borrowing money from a lender.
- Taxes: property taxes charged by local governments.
- Insurance: homeowner's insurance and, in some cases, mortgage insurance.
- Maintenance: repairs, upkeep, and long-term wear and tear.
What to know when renting
Renting generally requires less upfront cash and offers more flexibility. However, rent can increase over time, and renters do not benefit from home price appreciation. For people with uncertain plans or short expected stays, renting is often the safer financial choice.
The two questions that usually decide rent vs buy
- Do you have enough savings to buy? This includes the down payment, closing costs, and an emergency buffer.
- Will you stay long enough? Buying typically makes sense only if you stay beyond the break-even period.
Frequently asked questions
Is this rent vs buy calculator accurate?
The calculator is accurate based on the inputs you provide, but real-world outcomes can differ. Taxes, insurance, repairs, and market returns may change over time, so results should be viewed as estimates.
Which factors affect the result the most?
Time horizon, mortgage interest rate, selling costs, rent growth, home appreciation, and expected investment return usually have the largest impact on the outcome.
Does the calculator include tax benefits?
Tax benefits can be approximated if you include marginal tax rates. If no tax data is entered, the results represent a pre-tax comparison.
How should I choose an investment return assumption?
Use a conservative long-term estimate that matches your risk tolerance. Higher assumed returns increase the opportunity cost of buying, while lower returns tend to favor homeownership.
Tip: For international versions of this calculator, consider localizing taxes, fees, and terminology while keeping the same structure.