Rent vs Buy Calculator

Q: Should I put 20% down?

20% avoids PMI and gets better rates, but waiting years to save it while prices rise can cost more than PMI.

Rent isn't throwing money away — and buying isn't free money. Compare true net costs, find your breakeven year. Free, private, no signup.

Buying

Home price ($)

Down payment (%)

Mortgage rate (% APR)

How long you'll stay (years)

Renting

Monthly rent ($)

What the down payment could earn (%/yr) Opportunity cost — e.g. index funds.

Assumptions (tap to adjust)

Home appreciation (%/yr)

Rent growth (%/yr)

Property tax (%/yr)

Insurance ($/yr)

Maintenance (%/yr of price)

Buying closing costs (%)

Selling costs (%)

Net cost over 10 years

Buying costs you

Renting costs you

Breakeven: buying wins after-

Net cost, year by year

■ Buying ■ Renting — lower is cheaper

Renting isn't throwing money away (and buying isn't free money)

Buying has unrecoverable costs too: mortgage interest, property tax, insurance, maintenance, closing costs — none of that builds equity. Renting's unrecoverable cost is just rent. This calculator totals each side's net cost: everything paid minus what you get back selling, with the down payment's investment opportunity counted for renting.

Time decides. Buying starts deep in the hole (down payment + closing costs) and claws back via equity and appreciation. Stay ~5–7+ years and buying usually wins; move in 2–3 and renting almost always wins — watch the breakeven above.
The 5% rule. Unrecoverable buying costs run ~5% of the home price yearly (3% interest + 1% tax + 1% maintenance, roughly). If 5% of the price exceeds annual rent, renting is likely cheaper — a great sanity check.
What this ignores: rent control, tax deductions (mortgage interest/property tax if you itemize), HOA fees, and the immeasurable — stability vs flexibility. Money isn't the whole decision.

FAQs

Is renting really throwing money away?

No — rent buys housing, just like mortgage interest, tax, insurance and maintenance buy housing without building equity. Compare unrecoverable costs on both sides, which is what this calculator does.

How long until buying beats renting?

Typically 5–10 years depending on price-to-rent ratios, rates and appreciation. Hot markets with high price-to-rent ratios push breakeven later.

Should I put 20% down?

20% avoids PMI (~0.5–1%/yr) and gets better rates, but waiting years to save it while prices rise can cost more than PMI. Run both scenarios.

Does this include the mortgage interest deduction?

No — it assumes the standard deduction. If you itemize, buying's net cost falls by your marginal rate times deductible interest and tax.

Is my data sent anywhere?

No. Everything is computed in your browser; nothing leaves your device.

Disclaimer: Estimates for illustration, computed in your browser — no data leaves your device. Simplified model; excludes HOA, itemized deductions, and rent control. Not financial advice.