Is buying always better in the long run?

Usually, because rent keeps rising while fixed-rate mortgage payments do not, and you build equity. But high prices, cheap rent, or flat appreciation can keep renting ahead even after decades.

Does the calculator include tax benefits of owning?

No — mortgage interest and property-tax deductions (where applicable) are excluded, which makes the result slightly conservative for buyers who itemize.

What is the biggest factor in rent vs buy?

How long you stay. Transaction costs (2–3% to buy, ~7% to sell) are paid regardless, so short holds are almost always better spent renting.

Rent Vs. Buy Calculator

Buying wins in the long run, renting wins short-term — but where is the crossover? This calculator simulates 30 years of owning (payments, taxes, insurance, maintenance, appreciation, selling costs) against renting (rent with increases, insurance, deposit) and reports exactly how long you need to stay for buying to pay off.

#rent vs buy#home buying decision#break even point#renting costs#buying a house

Live calculate

Presets

Home Price

Down Payment

Interest Rate

Loan Term

years

Buying Closing Costs

Property Tax

% / year

Property Tax Increase

% / year

Home Insurance

$/year

HOA Fee

$/year

Maintenance Cost

% / year

Home Value Appreciation

% / year

Cost/Insurance Increase

% / year

Selling Closing Costs

Monthly Rental Fee

Rental Fee Increase

% / year

Renter's Insurance

$/month

Security Deposit

Renting Upfront Costs

Average Investment Return

% / year

Live mode: results update as you type.

Break-Even Staying Length

10 yrs

Buying is cheaper if you stay 10 years or longer. Otherwise, renting is cheaper.

Loan Amount: $400,000
Monthly P&I: $2,605.57
Cash Needed to Buy: $110,000
Avg Buying Cost (5 yrs): $3,771/mo
Avg Renting Cost (5 yrs): $3,202/mo
Avg Buying Cost (10 yrs): $3,409/mo
Avg Renting Cost (10 yrs): $3,455/mo
Rent Today: $3,000.00
Verdict: Buying is cheaper if you stay 10 years or longer

Average monthly cost by staying length

Average cost by staying length

Staying Length	Avg Buying / mo	Avg Buying / yr	Avg Renting / mo	Avg Renting / yr	Cheaper
1 Year	$6,757	$81,088	$3,023	$36,280	Renting
2 Years	$4,886	$58,631	$3,064	$36,770	Renting
3 Years	$4,264	$51,172	$3,109	$37,304	Renting
5 Years	$3,771	$45,250	$3,202	$38,426	Renting
7 Years	$3,562	$42,749	$3,300	$39,601	Renting
10 Years	$3,409	$40,909	$3,455	$41,460	Buying
15 Years	$3,291	$39,492	$3,735	$44,824	Buying
20 Years	$3,225	$38,704	$4,046	$48,552	Buying
25 Years	$3,169	$38,034	$4,390	$52,685	Buying
30 Years	$3,104	$37,244	$4,773	$57,274	Buying

Assumes: opportunity cost of your down payment & closing costs invested at the stated return; taxes/insurance/maintenance/rent grow at the stated rates; the home is sold at the end of each horizon with selling costs; tax deductions (MID, SALT) not modeled. Results are sensitive to appreciation — try 0% and 5%.

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Formula

BuyCum(Y) = Down+Closing + ΣCosts + Opportunity − (Value_Y×(1−Sell%) − Balance_Y); compare avg monthly vs renting

Pro tips

• If you may move within 3–5 years, renting usually wins — closing costs eat equity that fast.
• Rent increases compound: locked principal-and-interest payments are buying’s quiet advantage.
• Break-even moves earlier with a bigger down payment, lower rates, or higher expected appreciation.

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Rent Vs. Buy Calculator

#rent vs buy#home buying decision#break even point#renting costs#buying a house

Staying Length

Avg Buying / mo

Avg Buying / yr

Avg Renting / mo

Avg Renting / yr

Cheaper

1 Year

$6,757

$81,088

$3,023

$36,280

Renting

2 Years

$4,886

$58,631

$3,064

$36,770

Renting

3 Years

$4,264

$51,172

$3,109

$37,304

Renting

5 Years

$3,771

$45,250

$3,202

$38,426

Renting

7 Years

$3,562

$42,749

$3,300

$39,601

Renting

10 Years

$3,409

$40,909

$3,455

$41,460

Buying

15 Years

$3,291

$39,492

$3,735

$44,824

Buying

20 Years

$3,225

$38,704

$4,046

$48,552

Buying

25 Years

$3,169

$38,034

$4,390

$52,685

Buying

30 Years

$3,104

$37,244

$4,773

$57,274

Buying

Pro tips

• If you may move within 3–5 years, renting usually wins — closing costs eat equity that fast.

• Rent increases compound: locked principal-and-interest payments are buying’s quiet advantage.

• Break-even moves earlier with a bigger down payment, lower rates, or higher expected appreciation.

Rent Vs. Buy Calculator

Average monthly cost by staying length

Average cost by staying length

Formula

Pro tips

FAQ

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Rent Vs. Buy Calculator

Average monthly cost by staying length

Average cost by staying length

Formula

Pro tips

FAQ

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