Compare the total cost of renting vs buying a home over time. Calculate your break-even point and make an informed decision on whether to rent or buy.
This calculator helps you compare the true cost of renting versus buying a home over a specified period. It accounts for mortgage payments, property taxes, insurance, maintenance, HOA fees, closing costs, selling costs, home appreciation, rent increases, and the opportunity cost of your down payment. All calculations happen in your browser — your financial data never leaves your device.
The break-even point is when the net cost of buying equals the net cost of renting. For buying, we subtract the home's appreciated value and selling costs from total ownership costs. For renting, we add the future value of the down payment if it had been invested instead.
Opportunity cost is the return you could have earned by investing your down payment elsewhere instead of using it to buy a home. This calculator assumes you invest the down payment at your specified rate if you choose to rent.
Yes, if you're buying a condo or home in a community with a Homeowners Association. HOA fees can significantly impact the total cost of ownership and should not be overlooked.
Yes, the calculator includes mortgage interest and property tax deductions based on your marginal tax bracket. This reduces the effective cost of ownership for buyers who itemize deductions.
Generally, buying is less advantageous if you plan to move within 3-5 years because closing costs (2-5%) and selling costs (5-6%) eat into your equity. Use the calculator to see the exact break-even point for your scenario.