Rent vs Buy Calculator
Compare the long-term financial impact of renting versus buying, including estimated equity growth and home appreciation over time.
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Thinking buying makes sense? Let's see what rate you'd get.
Get a Rate QuoteRent vs Buy: What Actually Matters
The rent-vs-buy decision usually comes down to two things: how long you plan to stay, and what happens to your money either way. Rent payments build no equity and typically rise each year. A mortgage payment is largely fixed (aside from tax and insurance changes), and a portion goes toward building equity in an asset that may also appreciate over time.
The tradeoff is upfront cost and flexibility — buying involves a down payment and closing costs, and selling before a few years of ownership can erase any equity gains once transaction costs are factored in.
Frequently Asked Questions
How long should I plan to stay in a home before buying makes sense?
A common rule of thumb is at least 3-5 years, since closing costs and selling costs on both ends can offset the benefits of ownership for shorter timeframes. Your specific breakeven point depends on your local market and loan terms.
Does this calculator account for maintenance costs?
Not directly. Homeownership typically includes ongoing maintenance costs that renting doesn't, commonly estimated at 1-2% of the home's value annually. Factor this in separately when weighing your decision.
Is renting ever the smarter financial choice?
Yes, particularly for short time horizons, uncertain job situations, or markets with high home prices relative to rent. This calculator helps quantify the tradeoff for your specific numbers rather than assuming buying always wins.
