Rent vs Buy Calculator
Compare the total cost of renting versus buying a home
Should you rent or buy a home? This calculator compares the true total cost of renting versus buying over time, accounting for mortgage payments, property taxes, maintenance, tax benefits, opportunity cost of your down payment, and home appreciation. See your break-even point and make a data-driven decision.
Quick example: Renting at $2,000/month vs. buying a $400,000 home with 20% down at 6.75%. Buying breaks even after approximately 5 years. Over 10 years, buying saves roughly $68,000 compared to renting (assuming 3% annual home appreciation and 3% annual rent increases).
Renting
Buying
Cumulative Cost Comparison
| Year | Rent (Cumulative) | Buy (Cumulative) | Home Equity | Buy Net Cost |
|---|---|---|---|---|
| 1 | $21,600 | $100,893 | $83,484 | $17,409 |
| 2 | $43,848 | $132,059 | $97,491 | $34,568 |
| 3 | $66,763 | $163,506 | $112,045 | $51,461 |
| 4 | $90,366 | $195,243 | $127,170 | $68,073 |
| 5 | $114,677 | $227,278 | $142,894 | $84,384 |
| 6 | $139,718 | $259,620 | $159,244 | $100,376 |
| 7 | $165,509 | $292,279 | $176,251 | $116,028 |
| 8 | $192,074 | $325,263 | $193,945 | $131,318 |
| 9 | $219,437 | $358,584 | $212,359 | $146,225 |
| 10 | $247,620 | $392,250 | $231,528 | $160,722 |
Esta calculadora fornece estimativas apenas para fins informativos. Os resultados reais podem variar. Consulte um consultor financeiro para aconselhamento personalizado.
Rent vs Buy Calculator
How to Use This Calculator
- Enter your monthly rent — Your current or expected rent payment. Include any renter's insurance costs.
- Enter the home purchase price — The price of the home you are considering buying.
- Enter your down payment — The amount you would put down. This is important because the alternative is investing that money.
- Set the mortgage rate and term — Current 30-year fixed rates in 2026 are approximately 6.5–7%.
- Adjust assumptions — Home appreciation rate (historical average ~3–4%), rent increase rate (historical average ~3%), and investment return rate (for the opportunity cost of the down payment).
- Review the comparison — See the total cost of renting vs. buying over 5, 10, 15, and 30 years, plus the break-even year.
The Method Explained
The rent vs. buy decision involves comparing two scenarios over time:
Total Cost of Renting = Sum of (Monthly Rent × (1 + Rent Increase Rate)^Year) + Renter's Insurance − Investment Returns on Down Payment
Total Cost of Buying = Down Payment + Sum of Mortgage Payments + Property Taxes + Insurance + Maintenance + Closing Costs − Home Equity Gained − Tax Deduction Benefits
The break-even point is the year when buying becomes cheaper than renting on a cumulative basis. Before that point, renting is financially better; after it, buying wins.
Common Scenarios
| Monthly Rent | Home Price | Down Payment | Rate | Break-Even Year | 10-Year Advantage |
|---|---|---|---|---|---|
| $1,500 | $300,000 | 20% | 6.75% | Year 4 | Buying saves $52,000 |
| $2,000 | $400,000 | 20% | 6.75% | Year 5 | Buying saves $68,000 |
| $2,500 | $600,000 | 10% | 7.0% | Year 7 | Buying saves $31,000 |
| $3,000 | $500,000 | 20% | 6.5% | Year 3 | Buying saves $115,000 |
| $1,800 | $450,000 | 5% | 7.0% | Year 9 | Renting saves $12,000 |
Assumes 3% home appreciation, 3% rent increases, 7% investment returns, 1.2% property tax, 1% maintenance.
Pro Tips
- The break-even point is key. If you plan to stay fewer years than the break-even point, renting is usually cheaper. Transaction costs of buying and selling (5–8% of home value) heavily penalize short-term ownership.
- Do not ignore opportunity cost. Your down payment could be invested. If you put $80,000 in an index fund earning 7% instead of a down payment, it grows to $157,000 in 10 years. The calculator accounts for this.
- Maintenance costs are real. Budget 1–2% of the home's value per year. A $400,000 home costs $4,000–$8,000/year in maintenance — expenses renters never pay.
- Rent increases compound over time. At 3% annual increases, $2,000/month rent becomes $2,688 in 10 years and $3,612 in 20 years. Owning locks in your housing cost (excluding taxes and insurance).
- The tax benefit of homeownership has shrunk. With the $15,700 standard deduction (2026 single), many homeowners no longer itemize. Mortgage interest deduction only helps if total itemized deductions exceed the standard deduction.
- Market conditions matter enormously. In a rapidly appreciating market, buying sooner is advantageous. In a flat or declining market, renting and investing may win for a decade or more.
Sources
- Historical home appreciation: Federal Housing Finance Agency (FHFA) House Price Index
- Historical rent increases: Bureau of Labor Statistics (BLS) CPI Shelter component
- Mortgage rates: Freddie Mac Primary Mortgage Market Survey, 2026
- Transaction cost data: National Association of Realtors (NAR)
Related Calculators
- Mortgage Calculator — Calculate exact monthly mortgage payments
- Affordability Calculator — Determine how much house you can afford
- Down Payment Calculator — Plan savings for your home purchase
- Investment Growth Calculator — See what investing the down payment could yield
Perguntas Frequentes
It depends on your location, how long you plan to stay, interest rates, and local home prices. In general, buying becomes cheaper than renting after 5-7 years due to equity building and home appreciation. In high-cost cities with low rent-to-price ratios (San Francisco, New York), the break-even point may be 8-10+ years. In affordable markets, buying can be cheaper almost immediately.
The break-even point is when the total net cost of buying (mortgage + taxes + maintenance + insurance - equity built) equals the total cost of renting. This typically occurs at 5-7 years with a 20% down payment and average home appreciation. With a smaller down payment or higher interest rates, the break-even point extends further. Our calculator shows the exact break-even year for your scenario.
Probably not. Buying and selling a home involves significant transaction costs: 5-6% agent commissions when selling, 2-5% closing costs when buying, plus moving expenses. On a $350,000 home, selling costs alone could be $17,500-$21,000. If you might move within 3 years, you likely would not build enough equity to offset these costs.
Home appreciation is one of the biggest factors favoring buying. At 3% annual appreciation, a $350,000 home is worth $470,000 after 10 years — $120,000 in gains. At 5% appreciation, it reaches $570,000. However, appreciation is not guaranteed. If home values decline, you could owe more than the home is worth. This calculator lets you adjust the appreciation rate to see different scenarios.
This calculator includes mortgage payments (principal and interest), property taxes, homeowner insurance (estimated at 0.5% of home value), and maintenance costs. It does not include closing costs at purchase, selling costs when you eventually sell (5-6%), HOA fees, or the opportunity cost of tying up your down payment instead of investing it.
The standard guideline is 1-2% of your home value per year for maintenance. On a $350,000 home, that is $3,500-$7,000 annually. Older homes or homes in harsh climates may require more. Major expenses include HVAC replacement ($5,000-$15,000), roof replacement ($8,000-$25,000), water heater ($1,000-$3,000), and plumbing repairs. Budget on the higher end if the home is over 20 years old.
This calculator compares raw costs without tax adjustments. Homeowners can deduct mortgage interest (up to $750,000 of loan amount) and property taxes (up to $10,000 combined state and local) if they itemize deductions. However, with the higher standard deduction ($15,000 single, $30,000 married in 2026), many homeowners no longer benefit from itemizing.
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