Rent vs Buy Calculator
Renting isn't throwing money away and a mortgage isn't automatic wealth. Enter your numbers to see which wins over your actual stay — and the year buying breaks even.
The rent-versus-buy decision turns on three numbers — the price-to-rent ratio, how long you'll stay, and the full monthly cost of each option — not on a slogan. This calculator runs the year-by-year math, including the costs both sides quietly carry, and reports the year owning breaks even against renting.
Pair it with the Mortgage Calculator for the true monthly payment, the Closing Cost Estimator for the upfront cash, and read the full method in Renting vs buying a home.
FAQ
- How does the rent vs buy calculator decide a winner?
- It tracks the cumulative cost of renting versus the net cost of owning each year. Owning's net cost is mortgage interest + property tax + insurance + maintenance + the opportunity cost of your down payment, minus the equity you'd walk away with after selling costs. The break-even year is when owning's cumulative cost drops below renting's.
- What's the price-to-rent ratio?
- Purchase price divided by one year of rent for an equivalent home. Below about 15, buying tends to win; above about 21, renting and investing the difference often wins; 15–21 is a genuine toss-up decided by how long you stay.
- Why do short stays favor renting?
- Buying costs 2–5% upfront and selling costs 6–8%. You need years of ownership to amortize roughly 10% in transaction costs. Sell after two or three years and those costs can erase any equity you built.
- Is this financial advice?
- No — it's a planning model. It can't know your tax situation, future rates, or what the market will actually do. Use it to find your break-even year and stress-test assumptions, then confirm with a financial professional.