A walkthrough, end to end.
- 1
Enter buying inputs: home price, down payment, mortgage rate, term, property tax %, maintenance %, and HOA.
- 2
Enter renting inputs: monthly rent and annual rent increase %.
- 3
The calculator simulates both scenarios for your time horizon and shows total cost of each.
Total cost comparison
Buying cost = down payment + sum of (mortgage P&I + property tax + maintenance + HOA + insurance) − home value at exit + remaining loan balance. Renting cost = sum of monthly rent (with annual increases). The calculator reports the difference, including opportunity cost on the down payment.
What you can do with this.
Short-term rent decision (under 5 years)
Renting almost always wins for stays under 3–5 years. Closing costs (typically 3–6% of home price) and selling costs (5–6%) eat any equity gained, especially in flat markets.
Long-term buy decision (10+ years)
Buying tends to win at 7+ years in most markets. Beyond the breakeven point, you're building equity instead of paying landlord profit. Tax deductions and inflation hedge are bonuses.
High-cost cities (NYC, SF, Boston)
Price-to-rent ratios of 25+ flip the calculus — high-cost coastal markets often favor renting indefinitely. Run the math; don't assume buying always wins.
Low-cost cities
When rent is similar to mortgage P&I, buying is almost always the better long-term play. Most US Midwest and South markets fit this profile.
Opportunity cost of down payment
A $80K down payment invested at 7% real return grows to ~$157K in 10 years. The calculator includes this — buying loses some of its 'forced savings' edge when capital markets are factored in.
Maintenance reality check
Plan 1–2% of home value annually for maintenance. On a $400K home that's $4–8K/yr — most first-time buyers underestimate this and the calculator output will surprise them.
Property tax variation
Property tax ranges from ~0.3% (HI) to ~2.4% (NJ) of home value annually. Use your specific local rate; default 1.2% is a national rough average.
Rent vs buy 2026 — what's current
With current 7% mortgage rates and elevated home prices, the rent-vs-buy break-even has lengthened to 8–10 years in most US markets — significantly longer than the 5–7 years typical in low-rate eras.
Frequently asked.
The point where cumulative buying cost equals cumulative renting cost. Beyond it, buying is cheaper; before it, renting is cheaper. The breakeven depends heavily on your market and assumptions.
The calculator handles only the financial side. Stability, customization, and freedom from landlords are real value, just not in this calculator. Add 5–10% to renting cost as a 'flexibility premium' if you value moving easily.
Long-term US average is 3–4% nominal (1–2% real). Don't assume the recent decade's outsized gains continue — they're statistically unusual.
No. Calculations run entirely in your browser.