Rent vs Buy Calculator
Compare the true cost of renting vs buying a home. Our free calculator shows you the break-even point and long-term wealth impact of each option.
Buying Scenario
Annual % of home value
Annual growth rate
Annual % of home value
Renting Scenario
Monthly
Investment & Timeline
If renting, invest the down payment
Break-Even Analysis
Wealth After 7 Years
Upfront Cash Needed to Buy
If renting, this amount is invested at 7% return
Key Assumptions
- • Home appreciates at 3%/year
- • Rent increases 3%/year
- • Investments earn 7%/year
- • Selling costs are 8% of home value
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Frequently Asked Questions
Is it better to rent or buy?
It depends on: how long you'll stay (buying favors longer stays), local price-to-rent ratios, your investment alternatives, and personal factors. Use a calculator to compare your specific situation.
What is the break-even point?
The break-even point is when buying becomes cheaper than renting. This typically occurs 3-7 years after purchase, depending on your market, down payment, and how home prices change.
What hidden costs should I consider?
Buying costs beyond mortgage: maintenance (1-2% of home value/year), property taxes, insurance, HOA fees, opportunity cost of down payment. Renting costs: potential rent increases, no equity building.
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