Rent vs Buy Calculator
Compare the total cost of renting vs buying a home. Factor in mortgage, taxes, maintenance, appreciation, opportunity cost, and tax benefits.
How This Calculator Works
Calculation methodology and assumptions
This calculator compares the total cost of renting vs buying over a specified time period. Buying costs include mortgage P&I, property tax, insurance, maintenance (1% of value/year), and opportunity cost of the down payment. Buying gains include home appreciation (3%/year historical average) and equity buildup. Renting costs include monthly rent (growing 3%/year) and renters insurance.
Frequently Asked Questions
Is it better to rent or buy in 2026?
It depends on your local market, how long you plan to stay, your financial situation, and current mortgage rates. Generally, buying becomes favorable after 5-7 years in most markets. Use this calculator with your specific numbers.
What is the 5-year rule for buying a house?
The 5-year rule suggests you should plan to live in a home for at least 5 years to recoup closing costs, build equity, and benefit from appreciation. Selling sooner often means losing money to transaction costs.