Rent vs. Buy Calculator
Compare the true total cost of renting vs. buying over time, including equity buildup, opportunity cost, and the exact break-even point.
Buying
Renting
Break-even at Year 1 — buying is cheaper after that point
After 10 years: Renting costs $307,431 total vs. $222,252 net cost of buying.
- Total Rent Cost
- Net Buy Cost
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Frequently Asked Questions
Is it always better to buy than rent?
No. Buying builds equity but comes with significant upfront costs (down payment, closing costs), ongoing maintenance, and illiquidity. Renting offers flexibility and lower upfront costs. The break-even point — when buying becomes cheaper — typically ranges from 3–7 years depending on the market.
What costs does this calculator include?
Buying costs include mortgage P&I, property taxes, insurance, PMI, maintenance (typically 1% of home value/year), and opportunity cost of the down payment. Renting costs include monthly rent and renter's insurance.
What is the break-even point?
The break-even point is the year at which the total cost of buying equals the total cost of renting. After this point, buying is typically the cheaper option — assuming you stay in the home.
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