Rent vs Buy Calculator — Should I Rent or Buy?

Rent vs Buy Calculator

The most important financial decision most people make. Factors in opportunity cost, home appreciation, rent inflation, tax benefits, maintenance, and transaction costs to find your true break-even point.

Your situation
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What your down payment earns if you rent instead
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Buying
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% of home value per year
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Renting
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Break-even point
Buy monthly cost
Rent monthly cost
Monthly difference
Price-to-rent ratio
Buying over 7 years
Net cost after equity gained
Mortgage payments
Property tax
Maintenance
Insurance
Buying + selling costs
Less: equity at sale
Less: interest deduction
True net cost
Renting over 7 years
Net cost after investment gains
Total rent paid
Renter’s insurance
Down payment invested
Investment value at end
Less: capital gains tax
Net investment gain
True net cost
Year-by-year comparison
YearBuy: annual costBuy: cumulative netRent: annual costRent: cumulative netBetter to…
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Why renting isn’t always “throwing money away”

When you rent, your down payment stays invested and compounding. You avoid maintenance costs, property taxes, and transaction costs. In expensive markets, renting and investing the difference can outperform buying — especially if you move within 5 years.

The break-even point is the key number

The break-even point is how many years you need to stay before buying beats renting. In most US markets, the break-even is 3-7 years. If you’re likely to move before that, renting almost always wins.

The price-to-rent ratio

Divide the home price by annual rent. Under 15 = strong buy market. 15-20 = neutral. Over 20 = renting may make more financial sense. Coastal cities like San Francisco (30+) strongly favor renting, while Midwest cities like Indianapolis (~12) strongly favor buying.

Disclaimer: Estimates for educational purposes only. Not financial advice. Full disclaimer.