After 7 years, based on home equity after selling costs versus the renter investment balance.
Monthly Buying Cost
Principal, interest, tax, insurance, HOA, and maintenance.
Home value minus selling costs and remaining loan balance.
Down payment and closing cash invested, plus monthly savings when rent is cheaper.
Year-by-Year Comparison
Positive advantage means buying is ahead; negative means renting is ahead.
| Year | Rent / mo | Buy cost / yr | Home value | Loan balance | Owner net | Renter net | Advantage |
|---|---|---|---|---|---|---|---|
| 1 | $2,400 | $37,188 | $437,750 | $336,376 | $75,109 | $111,088 | -$35,980 |
| 2 | $2,484 | $37,188 | $450,883 | $332,501 | $91,329 | $124,077 | -$32,748 |
| 3 | $2,571 | $37,188 | $464,409 | $328,355 | $108,190 | $136,664 | -$28,474 |
| 4 | $2,661 | $37,188 | $478,341 | $323,921 | $125,720 | $148,789 | -$23,069 |
| 5 | $2,754 | $37,188 | $492,691 | $319,177 | $143,953 | $160,391 | -$16,438 |
| 6 | $2,850 | $37,188 | $507,472 | $314,104 | $162,920 | $171,403 | -$8,483 |
| 7 | $2,950 | $37,188 | $522,696 | $308,677 | $182,657 | $181,754 | $904 |
You Might Also Like
Rent vs Buy Calculator USA - Compare Renting and Buying a Home
About this tool
Free Rent vs Buy Calculator for US Home Buyers
This rent vs buy calculator helps US renters and home buyers compare the long-term financial outcome of renting a home versus buying one. Instead of comparing rent only against a mortgage payment, it includes the costs that usually decide the real answer: rent increases, down payment, closing costs, mortgage interest, property tax, homeowners insurance, HOA dues, maintenance, home appreciation, selling costs, and investment returns.
The renting side assumes the cash you would have used for the down payment and closing costs stays invested. If renting is cheaper month to month, the calculator also invests the monthly difference. The buying side estimates home value growth, mortgage payoff, selling costs, and remaining owner equity. The final result shows whether renting or buying is ahead after your selected time horizon, plus the year buying breaks even if it happens.
Use this calculator when searching for should I rent or buy a house, buying vs renting calculator, or rent versus buy home calculator answers. For deeper loan payment planning, open the Mortgage Calculator to inspect PITI, PMI, HOA, payoff date, and amortization. If you are organizing closing tasks or moving logistics, the Mini Kanban and Daily Focus Log can help track paperwork and deadlines.
Features
- Compare renting vs buying a home over a custom 1 to 40 year horizon
- Estimate rent growth with annual rent increase and renters insurance inputs
- Calculate fixed-rate mortgage principal and interest from price, down payment, rate, and term
- Include US homeowner costs: property tax, homeowners insurance, HOA dues, and maintenance
- Model home appreciation, closing costs, selling costs, and investment return assumptions
- See whether renting or buying is financially ahead after the selected period
- Find the estimated break-even year when buying starts to beat renting
- Compare owner net worth against renter investment balance year by year
- Copy a clean rent vs buy summary for notes, emails, or planning conversations
- Autosaves all assumptions in localStorage with a visible green header indicator
How to Use the Rent vs Buy Calculator
- 1Enter your rent scenarioStart with your current monthly rent, renters insurance, and expected annual rent increase. If your lease renewals have been rising quickly, test higher rent growth to see how that changes the comparison.
- 2Enter the home purchase scenarioAdd the target home price, down payment, mortgage rate, and loan term. The calculator estimates principal and interest automatically. Use the Mortgage Calculator if you want a dedicated mortgage amortization view.
- 3Add homeowner costsInclude property tax, homeowners insurance, HOA dues, and maintenance. These are the costs that basic rent or buy calculators often miss, but they can materially change the decision in US markets.
- 4Set growth assumptionsChoose home appreciation, investment return, closing costs, selling costs, and time horizon. Small changes in appreciation and investment return can produce large differences over 5, 10, or 15 years.
- 5Read the recommendation and tableThe result card shows which option is ahead after your selected horizon. The table shows each year, including estimated home value, loan balance, owner net worth, renter net worth, and the yearly advantage.
Common Use Cases
Frequently Asked Questions
The answer depends on your rent, target home price, down payment, mortgage rate, property tax, insurance, HOA dues, maintenance, expected home appreciation, investment return, and how long you plan to stay. This calculator compares the renter investment balance against estimated owner equity after selling costs. If you plan to move soon, renting may stay ahead because buying has closing costs and selling costs. If you stay longer and the home appreciates, buying may catch up or move ahead.
A rent vs buy calculator estimates the long-term financial result of both choices. The renting side includes rent, renters insurance, rent increases, and investment growth on cash that would otherwise be used for a down payment and closing costs. The buying side includes mortgage payments, property tax, insurance, HOA dues, maintenance, appreciation, loan payoff, and selling costs. The result shows which path creates more net worth after the selected number of years.
For renting, include monthly rent, renters insurance, and expected annual rent increases. For buying, include down payment, mortgage rate, loan term, property tax, homeowners insurance, HOA dues, maintenance, closing costs, selling costs, and expected appreciation. Many people compare rent only against mortgage principal and interest, but that misses major US homeowner costs such as property tax, insurance, repairs, and transaction fees.
The break-even year is the first year when estimated owner net worth is higher than the renter investment balance. In expensive markets with high property tax, high mortgage rates, or high HOA dues, buying may take longer to break even. In markets with strong appreciation or high rent growth, buying may catch up sooner. This calculator shows the break-even year when it occurs within your selected time horizon.
Yes. The buying scenario includes principal and interest from a fixed-rate mortgage, property tax as a percentage of home value, annual homeowners insurance, HOA dues, and a maintenance reserve. For a detailed mortgage-only payment view, you can also use the Mortgage Calculator, which focuses on PITI, PMI, HOA, payoff date, and amortization.
A common planning rule is 1% of the home value per year, but the right number depends on the age, condition, climate, and type of property. Newer homes may cost less in the first few years, while older homes can require more for roof, HVAC, plumbing, appliances, and exterior repairs. This calculator uses maintenance as an annual percentage of the home price so you can test conservative and aggressive assumptions.
Yes. The calculator remembers your scenario in localStorage so your rent, home price, mortgage assumptions, costs, and time horizon are restored when you come back in the same browser. The autosave indicator in the header shows when the data is saved. Nothing is sent to a server; the saved data stays in your browser.
No. This is a planning tool for comparing assumptions, not financial, tax, legal, or lending advice. Real decisions should also consider job stability, emergency savings, lifestyle flexibility, school districts, commute, local market risk, tax rules, and personal preferences. Use the result as a starting point before speaking with a lender, tax professional, or financial advisor.