Rent or buy? See which is actually cheaper for you.
Enter your purchase price, interest rate, rent, and — most importantly — how long you plan to stay. We'll do the full math, including equity and opportunity cost, and tell you which comes out ahead over your time horizon.
An estimate to guide the decision, not financial advice. It ignores taxes/deductions and assumes you'd invest the upfront savings if renting. Real outcomes vary — read the full breakdown.
It's not the monthly payment — it's the whole picture.
Adds up buying's true cost
Down payment, closing, mortgage interest, property tax, and upkeep — minus the equity and appreciation you get back when you sell.
Adds up renting's true cost
Every month of rent (rising each year) — minus what you'd earn investing the down payment you didn't spend.
Finds your break-even
The year buying overtakes renting. Stay past it and buying wins; leave before it and renting was cheaper.
Rent vs. buy: what the math really comes down to
The rent-versus-buy question gets argued like it has one right answer. It doesn't — it has your answer, and it hinges mostly on a single number: how long you'll stay. Buying carries big upfront and exit costs (down payment, closing, agent fees), so it takes years of building equity to come out ahead. Leave too soon and those costs swamp any benefit.
Why "how long you'll stay" dominates
When you buy, a large chunk of your early mortgage payments is interest, and you pay 2–5% in closing costs going in and roughly 6% in selling costs coming out. Those are sunk the moment you transact. Only time — paying down principal and (hopefully) appreciation — earns it back. That's why the calculator puts your timeline front and center, and why the break-even year is the number that actually matters.
A rough rule of thumb: if you'll be in the home fewer than about five years, renting is often cheaper. But your inputs decide it — a low rate, modest price, and steep local rents can shift the break-even earlier; high prices and high rates push it later.
The hidden cost of renting
Renting isn't "throwing money away" — but it has a real opportunity cost only if you actually invest the money you'd have tied up in a down payment. This calculator gives renters that benefit by assuming the upfront savings are invested at the return rate you set. Turn that rate up or down to see how much it swings the result.
What the numbers can't capture
- Flexibility — renting lets you move easily; that's worth real money if your life is in flux.
- Stability & control — owning means no landlord, no surprise non-renewals, and freedom to renovate.
- Forced savings — a mortgage quietly builds equity; few renters invest the difference as disciplined as the math assumes.
Once you've got a direction, dig into the bigger picture in our Home Value guide, or if you're leaning toward buying, see what actually determines a home's value before you shop.