Syed Waleed

Compare renting against buying — mortgage, taxes, insurance, HOA, and upkeep — and find the year buying starts winning. Free, no signup.

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Rent vs Buy Calculator — Is Buying Cheaper Than Renting?

Compare the true cost of renting against buying a home — mortgage, taxes, insurance, HOA, and maintenance included — and find the year buying starts to pay off.

Renting

Buying

Break-even year
—
buying becomes cheaper than renting
Monthly rent (year 1)
$0
before annual rent increases
Monthly cost to buy (year 1)
$0
mortgage plus taxes, insurance, HOA, upkeep
Total rent paid
$0
over the comparison period
Net cost of buying
$0
all buying costs minus home equity built
Home equity at end
$0
home value minus remaining loan balance
YearRent that yearCumulative rentCost to buy that yearNet buying cost (cumulative)Cheaper so far

How the math works: the mortgage payment uses the standard fixed-rate formula. Property taxes and maintenance grow with the home's value; rent grows at your rent-growth rate. "Net cost of buying" = down payment plus closing costs (estimated at 2% of the price) plus every monthly ownership cost, minus the equity you own at that point (home value minus the remaining loan balance). That equity credit is why buying usually starts out expensive and catches up over time. This calculator ignores income-tax deductions and investment returns on a down payment, so treat it as a cost comparison, not financial advice.

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All math happens in your browser. Your rent and home price are never uploaded or stored anywhere.

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No account, no email, no app. Run as many rent-versus-buy scenarios as you like.

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Unlimited comparisons with a year-by-year breakdown — free, no limits.

How to use the rent vs buy calculator

  1. 1Enter your rent

    Type your current monthly rent and how fast you expect it to rise each year — 3% is a reasonable US default.

  2. 2Enter the home you would buy

    Add the price, your down payment percentage, the mortgage rate, and the loan term. A 20% down payment avoids private mortgage insurance in most cases.

  3. 3Add the hidden costs of owning

    Property taxes, homeowners insurance, HOA dues, and maintenance are where buyers get surprised — fill in your local figures, not just the mortgage.

  4. 4Read the break-even year

    The result shows the first year buying becomes cheaper overall, plus a year-by-year table so you can see exactly when the lines cross.

Why this rent vs buy calculator is different

True ownership costs

Most rent-versus-buy math stops at the mortgage payment. This one adds taxes, insurance, HOA dues, and maintenance, which can add $500 to $1,000 a month.

Break-even year, not just a monthly number

Buying almost always costs more in year one. The break-even year tells you how long you must stay for ownership to win.

Equity counted fairly

Your monthly mortgage builds equity, so the comparison credits you for the home value you own — it does not treat the whole payment as lost money.

Rent growth included

Rent rarely stays flat. Annual rent growth is built in, which is why renting gets steadily more expensive over a 10 or 20 year horizon.

Year-by-year table

See cumulative rent against cumulative net buying cost for every year, so a "buy in year 7" claim is checkable, not a black box.

Adjusts to your market

High-tax states, HOA-heavy condos, and fast-appreciating markets all change the answer — every one of those inputs is editable.

Rent vs buy FAQs

Is it better to rent or buy a house right now?
It depends on how long you will stay, your local prices and rents, and your mortgage rate. As a rule of thumb, buying usually wins if you stay past the break-even year (often 5 to 10 years) and loses if you move sooner, because closing costs and early mortgage interest eat the first years of equity. Run your real numbers above instead of relying on a rule of thumb.
How is the break-even year calculated?
Each year, the calculator totals what renting cost you and what buying cost you net of equity (down payment, closing costs, and all monthly ownership costs, minus home value less the remaining loan balance). The break-even year is the first year the net buying total drops below the cumulative rent total.
What costs do first-time buyers forget?
Closing costs (about 2% to 5% of the price), property taxes, homeowners insurance, HOA dues, and maintenance (budget about 1% of the home value per year). This calculator includes all of them except the variable part of closing costs beyond the 2% estimate.
Does a bigger down payment change the break-even year?
Yes — a bigger down payment lowers the loan and the monthly payment, and it starts you with more equity, so buying usually breaks even sooner. Try 10% versus 20% above to see the difference for your home.
Why does buying cost more than renting in year one?
In the early years of a mortgage, most of each payment is interest, not principal, and you also pay the down payment and closing costs up front. Equity builds slowly at first, then faster as the loan balance falls and the home appreciates.
Should I include rent growth?
Yes. Landlords raise rent most years, and over a decade even 3% annual growth raises a $2,000 rent to about $2,610 a month. Ignoring rent growth makes renting look artificially cheap in long comparisons.
Is this calculator financial advice?
No. It is a cost comparison based on the assumptions you enter. It does not account for tax deductions, investment returns, job mobility, or market crashes. Talk to a financial adviser before a purchase decision.

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