Rent vs Buy Calculator
Compare the total costs of renting versus buying a home over time.
Should You Rent or Buy?
Enter your details to compare total costs and find your break-even point
Understanding Rent vs Buy
When Buying Makes Sense
- You plan to stay 5+ years
- You have stable income and job security
- You have 20%+ down payment
- Local rent is high relative to home prices
- You want to build long-term wealth
When Renting Makes Sense
- You may move within 1-3 years
- Job situation is uncertain
- Home prices are very high in your area
- You prefer flexibility over stability
- You can invest savings for higher returns
Hidden Costs of Buying
- Closing costs (2-5% of price)
- Maintenance and repairs (1-2%/year)
- Property taxes (varies by location)
- PMI if down payment < 20%
- Selling costs (5-6% when you sell)
Hidden Costs of Renting
- Annual rent increases (3-5% typical)
- No equity building
- No tax deductions
- Moving costs if lease not renewed
- Less control over living space