Rent vs buy
Rent vs Buy Calculator
The fair comparison most calculators skip: what your down payment would have earned if you'd invested it instead. Adjust the inputs — see your break-even year.
Why most rent-vs-buy math is wrong
The naive comparison — “my mortgage payment is the same as rent, so I'm building equity” — ignores three big things: closing costs, ongoing carry costs (taxes, insurance, maintenance), and the opportunity cost of tying up your down payment. This calculator includes all three.
The 5-year rule of thumb
Buying typically beats renting if you'll hold the home for 5+ years and the local rent-to-price ratio is reasonable. Below that horizon, closing and selling costs (a round-trip 8–10% of price) usually swallow any equity gain. Drag the holding-period slider to find your break-even.
The investment-return assumption
We assume your down payment + closing costs would have earned the “investment return” rate if you'd rented and invested instead. Default is 7% (typical long-term equity returns). Lower this to 4% if you'd have left the cash in bonds or HYSA, and the rent case looks much weaker.