Compare the true total cost of renting and buying over your planned time horizon — including equity built, home appreciation, opportunity cost, and tax benefits.
Blue = renting · Orange = buying · Lower line = better deal at that point in time
Compare the true long-term cost of renting versus buying to make a more informed housing decision.
Input what you're currently paying (or would pay) in rent, plus any annual rent increase you expect. This establishes the renting cost over time.
Input the home price, down payment, interest rate, and loan term. Include property taxes, insurance, and maintenance costs for a complete picture.
Choose how many years you plan to stay. This is the most important variable — buying usually wins over longer periods, while renting often wins for shorter stays.
See which option costs less over your time horizon, the total cost of each path, and a chart showing how the costs compare year by year.
Buying almost always wins over 20–30 years. But in the short term, high closing costs and a slow equity build mean renting is often cheaper for the first 3–5 years.
The break-even point varies by market, rate, and local rent/price ratios. Run this calculator for your specific numbers — a 2% difference in appreciation changes everything.
Divide home price by annual rent. Under 15 = buy is favorable; 15–20 = neutral; over 20 = renting often makes more sense.
The down payment you'd invest instead of paying it upfront matters significantly — especially in strong stock markets.
Closing costs (2–5%), moving, and early maintenance mean renting is cheaper in the first 1–3 years almost always.
Each mortgage payment builds equity. Renters must actively invest the difference — which many don't do in practice.