Rent vs Buy Calculator

Buying typically wins financially after 5–7 years in the same home, when accumulated equity and appreciation outweigh transaction costs (typically 8%–10% combined for buy and sell). Shorter horizons, high-cost markets, or volatile careers favor renting. The calculator factors in rent vs PITI, opportunity cost of the down payment, maintenance, and appreciation to find your specific break-even.

No - rent buys housing, flexibility, and freedom from maintenance costs and market risk. Owning has its own "rent" in the form of mortgage interest, property tax, insurance, maintenance (typically 1%–4% of home value annually), and opportunity cost on the down payment. Whether buying beats renting depends on local price-to-rent ratios, your time horizon, and what you do with the money you don't spend on a down payment.

Price-to-rent ratio = home price ÷ annual rent for a comparable property. As a rough guide: 15 or below favors buying, 16–20 is neutral, above 21 strongly favors renting. New York and San Francisco have run 35+; many Sun Belt cities sit at 12–16. The ratio captures how expensive it is to own relative to rent in your specific market.

Common forgotten costs of buying: closing costs (3%–5%), maintenance and repairs (1%–4% of value yearly), property taxes, HOA dues, homeowners insurance, opportunity cost of down payment, and selling costs (5%–6% commission plus transfer taxes). For renting, people often forget renter's insurance and the lack of equity build-up. The calculator includes all of these.