Make smarter housing decisions with data
Compare the total cost of renting versus buying a home over time. Factor in mortgage payments, property taxes, maintenance, opportunity cost of the down payment, rent increases, and home appreciation to make an informed decision.
Buying is not always better than renting. The right choice depends on: how long you plan to stay (buying typically requires 5+ years to break even), local housing costs vs rent prices, your financial situation, mortgage rates, property taxes, and your personal preferences. This calculator helps you compare the true total cost of each option.
Beyond the mortgage payment, homeowners pay: property taxes (1-3% of home value annually), homeowner's insurance, maintenance and repairs (budget 1-2% of home value per year), HOA fees if applicable, PMI if down payment is under 20%, and closing costs (2-5% of purchase price). These can add 30-50% to the base mortgage payment.
A 20% down payment on a $400,000 home is $80,000. If invested in the stock market instead (averaging 7-10% returns), that $80,000 could grow to $160,000+ in 10 years. This opportunity cost is often overlooked when comparing renting vs buying. The rent vs buy calculation must account for what your down payment money could earn elsewhere.
The break-even point is when the total cost of buying equals the total cost of renting. In many markets, this is 5-7 years. If you plan to move sooner, renting is usually cheaper due to closing costs and transaction fees. If you plan to stay longer, buying usually wins because you build equity while your fixed mortgage payment stays constant as rents rise.
Yes, completely free with no signup required. This tool runs entirely in your browser and will always be free to use.
Our calculator uses standard formulas and industry-accepted methods for high accuracy. Results are suitable for planning and estimation. For critical applications, always verify with a professional.
Yes. All calculations happen in your browser using JavaScript. No data is ever sent to any server. Your inputs and results never leave your device, ensuring complete privacy.
Yes. This tool is fully responsive and works on smartphones, tablets, and desktop computers. No app download is needed — just use your web browser.
We regularly update our tools to ensure accuracy and improve the user experience based on feedback. The underlying formulas are based on established standards and are verified for correctness.