Rent vs Buy Calculator
The rent-vs-buy decision hinges on how long you'll stay. We compare the total cost of each path over your horizon — including your down payment's opportunity cost and the equity you'd build — and estimate the year buying breaks even.
This compares total economic cost — including your down payment's opportunity cost if invested, plus home equity at sale. It's an estimate; taxes and local market dynamics vary.
Frequently asked questions
Is it cheaper to rent or buy?
It depends mostly on how long you stay. Buying has large upfront costs (down payment, closing) and selling costs, so it usually loses to renting over short horizons and wins over long ones. This calculator finds the breakeven year for your numbers.
What costs does this rent-vs-buy calculator include?
For buying: down payment, closing costs, principal, interest, property tax, insurance, maintenance, and selling costs — offset by home equity and appreciation at sale. For renting: rising rent plus the investment return you'd earn on the cash you didn't spend on a down payment.
What is the opportunity cost of a down payment?
Money tied up in a down payment can't be invested elsewhere. This calculator credits the renting path with the return that cash could earn, so the comparison is fair rather than ignoring what renters do with their savings.
Sources: Consumer Financial Protection Bureau — buying a house; Standard rent-vs-own total-cost-of-ownership methodology.
Estimates for educational purposes only — not a loan offer, financial advice, or a commitment to lend. Actual rates, payments, and terms vary by lender and creditworthiness.