Rent vs. Buy Calculator
Compare the long-term costs of renting versus buying to make the best decision for your situation.
Compare Your Options
Renting
Historical average is ~3%
Buying
Historical average is ~3-4%
Typically 1% of home value
Your Comparison Results
Buying saves you $65,843
Over 7 years based on your assumptions
Renting
$183,899
Total cost over 7 years
Buying
$118,056
Net cost (costs minus equity)
Cumulative Cost Over Time
Net buy cost = total ownership costs minus equity built
Equity Built
$205,103
Home worth $491,950 in 7 years
Break-Even Point
Year 2
When buying becomes cheaper
Your Assumptions
Small changes in these assumptions can significantly impact the results. Adjust them to match your local market conditions.
Buying could save you $65,843
See what mortgage rates you qualify for and make the most of your decision.
Disclaimer: This calculator uses your assumptions about future rent increases and home appreciation. Actual costs will vary. Consider non-financial factors like flexibility, maintenance responsibilities, and personal preferences.
Frequently Asked Questions
Is it better to rent or buy in 2026?
The answer depends on your situation. Buying makes sense if you plan to stay 5+ years, have stable income, and can afford the upfront costs. Renting may be better for flexibility, lower upfront costs, or if home prices are very high relative to rents.
How long should I plan to stay to make buying worth it?
Most experts suggest staying at least 5 years to make buying worthwhile. This allows time to build equity, offset closing costs, and benefit from potential appreciation. The break-even point varies by market and your specific costs.
What costs are included in buying vs renting?
Buying includes mortgage payments, property taxes, insurance, maintenance (1-2% of home value annually), HOA fees, and opportunity cost of down payment. Renting includes rent, renters insurance, and potential rent increases.
How does appreciation affect the rent vs buy decision?
Home appreciation can significantly impact the buy decision. In markets with strong appreciation (3-5%+ annually), buying becomes more attractive. In flat or declining markets, renting may be financially better in the short term.