Rent or buy?

Total cost of each path over the years you expect to stay, including what your down payment could earn elsewhere.

Current rent ($ per month)

Rent increase (% per year)

Home price ($)

Down payment (%)

Interest rate (%)

Term (years)

Property tax (% of price per year)

Insurance ($ per year)

HOA ($ per month)

Maintenance (% of price per year)

Home appreciation (% per year)

Return you could earn on the down payment (% per year)

Buying closing costs (% of price)

Selling costs (% of sale price)

Years you plan to stay

Mortgage insurance (% of loan per year, if under 20% down)

Your inputsNothing is saved or sent. Year by year simulation; the buy side counts the equity you get back at sale and the rent side counts what the down payment and closing costs would have earned.

How to read it

Renting costs the rent, rising each year. Buying costs the payment, taxes, insurance, HOA, maintenance and closing costs, but you get equity back when you sell: the sale price after selling costs minus the remaining loan. The fair comparison also credits the renter with the investment return on the cash the buyer tied up in the down payment and closing costs.

The break even year is the first year buying comes out ahead. Short stays favor renting because closing and selling costs are paid once against few years of appreciation. Longer stays favor buying as the loan balance falls and rent keeps rising.

An illustration, not a loan offer, a rate quote or advice. Your numbers depend on your application, the property and the lender. See disclaimers.

Questions people ask

Why does the calculator credit the renter with investment returns?

Because the buyer put the down payment and closing costs into the house. If the renter keeps that money invested, it grows. Ignoring that makes buying look better than it is.

Is mortgage interest deductibility included?

No. Most households take the standard deduction since 2018, so the deduction changes nothing for them. If you itemize, buying is somewhat better than shown.