Rent vs Buy Calculator

Make an informed decision about renting vs buying with comprehensive financial analysis, equity projections, and breakeven calculations.

Complete Analysis

Year-by-year financial breakdown

Equity Growth

Track home equity vs investments

Tax Benefits

Calculate mortgage interest deductions

Breakeven Point

Find when buying becomes better

Home Purchase
Details about buying a home
20.0% of home price
$12,000
Renting
Details about renting

Investment Assumptions

Tax & Analysis Settings

Understanding Rent vs Buy

Benefits of Buying

✓ Build equity and wealth over time

✓ Tax deductions on mortgage interest and property taxes

✓ Fixed monthly payments (with fixed-rate mortgage)

✓ Freedom to customize and renovate

✓ Potential appreciation in home value

✓ Forced savings through mortgage payments

Benefits of Renting

✓ Flexibility to move easily

✓ No maintenance or repair costs

✓ No property taxes or HOA fees

✓ Lower upfront costs (no down payment)

✓ Predictable monthly expenses

✓ Amenities often included (pool, gym, etc.)

Factors to Consider

How Long Will You Stay?

The longer you plan to stay, the more sense buying makes. Buying typically becomes financially advantageous after 5-7 years when equity growth and appreciation offset closing costs and other expenses.

Local Market Conditions

In expensive markets where rent is much lower than mortgage payments, renting may be better. Research local price-to-rent ratios and historical appreciation rates.

Opportunity Cost

Consider what else you could do with your down payment. If you can earn higher returns investing in the stock market than your home appreciation rate, renting and investing might be better.

Lifestyle Preferences

Beyond finances, consider your lifestyle. Do you value stability and customization (buying) or flexibility and low maintenance (renting)? Both have non-financial benefits.

Frequently Asked Questions