How this rent vs buy calculator works
This rent vs buy calculator compares renting and buying over time. It works as a mortgage vs rent calculator, home equity vs renting calculator, and renting plus investing calculator. It estimates renter investment growth from the down payment and monthly cost difference, then compares it with homeowner equity after mortgage balance, taxes, insurance, and home appreciation.
What is the break-even year?
The break-even year is the first year when buying is estimated to cost less than renting. If there is no break-even within your selected horizon, the calculator shows which option is cheaper over that time period.
Should I rent or buy a house?
The answer depends on mortgage rate, home price, down payment, expected appreciation, rent, how long you will stay, and the investment return you could earn by renting and investing instead. This tool helps compare the opportunity cost of buying a house against the long-term wealth path of renting.
Rent or buy FAQ
Is buying always better long term?
No. Buying can build equity, but high rates, taxes, insurance, maintenance, transaction costs, and low appreciation can make renting plus investing cheaper for some households.
What costs are not included?
This is a simplified model. It does not include closing costs, selling costs, HOA fees, maintenance, tax deductions, rent increases, or personal lifestyle value. Treat it as a planning estimate, not a final homebuying decision.