Stop guessing. Our advanced calculator compares the true total cost of renting vs buying — including opportunity cost, tax deductions, maintenance, and your exact breakeven year.
= $100,000
Current 30yr fixed avg ~6.5% (2026)
Typically 2–5% of price
Agent + title ~6–8%
Annual inflation on home costs
US average: 3–5% annually
Required by most US landlords
Refunded at end of lease
S&P 500 historical avg ~7% after inflation
Fill in the details above and click Calculate Now to see your personalized rent vs buy analysis with breakeven year, net worth comparison, and year-by-year chart.
Most calculators only compare your mortgage payment to your rent. We go deeper — because the real decision is much more complex.
What if you invested your down payment in the stock market instead? We calculate both paths — homeowner equity vs. renter's investment portfolio.
Mortgage interest deduction, SALT cap, and standard deduction thresholds — all factored in based on your filing status and marginal tax rate.
Property taxes, HOA fees, maintenance (1% rule), PMI, insurance, and selling costs are all included — not just your monthly mortgage payment.
We calculate the exact year when buying becomes cheaper than renting. This is the most important number in your decision.
15+ inputs can feel overwhelming. Here is exactly what each field means and where to find the number.
Popularized by financial expert Ben Felix — take the home price, multiply by 5%, divide by 12. If your rent is below that number, renting wins financially.
$500,000 × 5% ÷ 12 = $2,083/mo
If rent < $2,083 → Rent. If higher → Buy.
Buying a home has huge upfront costs — closing fees, inspections, agent commissions. You need enough time to recover these before selling.
Stay 7–10+ years → Buying usually wins
Use our calculator for your exact number
If you invest your $100,000 down payment at 7% (S&P 500 historical avg) vs 3% home appreciation, investing may actually build more wealth.
$100k × (7% - 3%) = $4,000/yr advantage from investing
A 30-year fixed-rate mortgage locks your payment forever. Renters face annual increases of 3–5%. Over 20 years, your mortgage becomes a bargain.
$3,000 rent at 4%/yr = $6,573/mo in 20 years
Your mortgage: still the same.
Mortgage interest is deductible on up to $750,000 of debt — but only if your itemized deductions exceed the standard deduction for your filing status.
SALT deduction capped at $10,000–$40,000
Our calculator applies this automatically
Homeowners should set aside 1% of their home's value every year for repairs. On a $500,000 home, that's $5,000/year — money renters never spend.
$500k home = $5,000/yr in maintenance
This is a hidden cost most ignore
Is renting a waste of money, or is buying a debt trap? Let's use math to find your financial "Breakeven Point."
The most important factor in any rent vs buy calculator is time. Buying a home has huge upfront costs — closing fees, inspection costs, and agent commissions. If you sell the house after only 2 years, you will likely lose money even if the house value went up.
When you compare renting vs buying, don't just look at mortgage vs rent. Owning a home comes with "unrecoverable costs" that you never get back:
1.5–2% of home value yearly, increasing 2–3% per year in most states.
$500,000 home = $5,000/year on roofs, pipes, appliances, and paint.
$200–$500/month in condos or gated communities — on top of mortgage.
If down payment < 20%, add 0.5–1.5% of loan annually until you hit 20% equity.
To buy a house, you might spend $100,000 as a down payment. If you kept renting, you could invest that $100,000 in the stock market (S&P 500 historical average: ~7% annually after inflation).
This doesn't mean renting always wins — but it shows why comparing only mortgage vs rent is incomplete. Our Rent vs Buy Calculator accounts for this opportunity cost automatically.
One reason people love buying in the USA is the tax breaks. However, you only benefit if your total itemized deductions exceed the standard deduction.
Popularized by financial experts, this rule helps you decide without any calculator:
If you can rent a similar home for less than $2,083/month, renting is the better financial choice. If your rent would be higher, buying looks like the better deal.
No. Renting buys you flexibility and shelter without the risk of a market crash or expensive repairs. Homeowners also "throw away" money on mortgage interest, property taxes, maintenance, and insurance — costs that build no equity. Renting is smarter when you plan to stay less than 5 years or want to keep your down payment invested.
In most US markets, the breakeven point is 4–7 years. This is when you've recovered your upfront buying costs through equity and appreciation. In expensive cities like San Francisco or New York, it can take 10+ years. Use our Rent vs Buy Calculator above to find your exact breakeven year based on your specific inputs.
Multiply the home price by 5%, then divide by 12. The result is your "rent threshold." If you can rent a similar home for less than that number, renting is the better financial move. Example: $500,000 × 5% ÷ 12 = $2,083/month. If local rent for a similar home is under $2,083, keep renting.
While 20% is the gold standard to avoid PMI (Private Mortgage Insurance), many first-time buyers use FHA loans with as little as 3.5% down. Conventional loans allow 5% down. Just remember — a lower down payment means higher monthly payments, a higher loan balance, and PMI costs until you reach 20% equity.
Equity is the portion of the home you actually own: Current Home Value minus Your Remaining Mortgage. It grows two ways: (1) every mortgage payment slightly reduces your loan balance, and (2) home appreciation increases the value of your property. After 30 years of payments, you own the home outright — your equity equals 100% of its value.
Yes — this is one of the biggest advantages of buying. A 30-year fixed-rate mortgage locks your principal and interest payment forever. Meanwhile, renters face 3–5% annual increases. A $3,000/month rent at 4% annual growth becomes $6,573/month after 20 years — while your mortgage payment stays exactly the same.
Waiting for lower rates is a gamble. When rates drop, more buyers enter the market and home prices typically rise — often offsetting the rate savings. Many experts advise: buy when you are personally and financially ready. You can always refinance later if rates fall significantly.
You can deduct the interest paid on up to $750,000 of mortgage debt (for loans originated after Dec 15, 2017). However, this only saves you money if your total itemized deductions exceed the standard deduction — about $16,100 for singles and $32,200 for married couples filing jointly in 2026. Our calculator checks this for your filing status automatically.
PMI (Private Mortgage Insurance) protects the lender if you default. It's required when your down payment is less than 20% of the home price. It typically costs 0.5–1.5% of the loan annually. You can avoid PMI by putting 20% down, or it automatically cancels once you reach 20% equity. A "piggyback loan" (80-10-10) is another strategy to avoid PMI.
Know how much rent you can afford before deciding whether to rent or buy. Get your Lease Readiness Score, prorated rent, and roommate splitter — all free.