🏠 vs 🔑 Free Tool
Rent vs. Buy Calculator
Is buying really better than renting? Compare the true total cost of each over time — including equity, opportunity cost, and taxes.
Buying Costs
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Renting Costs
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Time Horizon
1 yr7 years30 yrs
Cumulative Cost Over Time
Buying (net cost)
Renting (net cost)
Does buying always beat renting?
Not always. Buying wins when you stay long enough to break even on closing costs and transaction fees. For stays under 3–4 years, renting is often cheaper. Home appreciation, local rent levels, and investment returns on your down payment all affect the outcome. This calculator models all of these factors.
What is the break-even point for buying?
The break-even point is when cumulative buying costs equal cumulative renting costs. It's typically 4–7 years in most U.S. markets, though this varies significantly based on home prices, rent levels, and appreciation rates in your area.
What does "opportunity cost" mean in this calculator?
Opportunity cost is what your down payment could earn if invested instead. If you invest $90,000 at 7% annually rather than using it as a down payment, it grows to approximately $162,000 in 10 years. This is a real financial trade-off that this calculator accounts for on the renting side.
After 7 Years
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