Rent vs Buy Calculator
Should you rent or buy? Compare the total cost of each option and see when buying becomes cheaper than renting.
Rental Costs
Purchase Costs
Monthly Comparison
Monthly Rent
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Monthly Mortgage
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Total Owning /mo
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Down Payment
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Over 7 Years
Total Rent Cost
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Total Buy Cost
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Difference
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Break-Even Year
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💡 Recommendation: Based on your inputs, renting may be the more affordable option over your planned stay.
How to use the rent vs buy calculator.
- Enter your current monthly rent and expected annual rent increase.
- Enter the home price you're considering and your down payment percentage.
- Input the mortgage interest rate, loan term, property tax rate, HOA fees, and estimated maintenance costs.
- Enter how many years you plan to stay in the home.
- Click "Compare" to see monthly costs, total costs over time, and the break-even year.
Frequently asked questions.
What is the break-even year?
The break-even year is when the total cost of buying becomes less than the total cost of renting. Buying has higher upfront costs (down payment, closing costs) but may become more affordable over time as rent increases.
How long should I plan to stay in a home?
Financial experts generally recommend staying at least 5-7 years in a home to offset the transaction costs of buying and selling. The longer you stay, the more likely buying is to be the better financial decision.
What costs does this calculator include?
It includes mortgage payments (principal + interest), property taxes, HOA fees, maintenance costs, down payment, and closing costs. It does not include PMI, utilities, insurance differences, tax benefits of mortgage interest deduction, or home appreciation.
How much should my down payment be?
A 20% down payment is standard to avoid private mortgage insurance (PMI). However, many conventional loans accept as little as 3-5% down, and FHA loans allow 3.5%. A smaller down payment means higher monthly payments and additional PMI costs.