Rent vs. Buy calculator.
Use this free rent vs. buy calculator to compare the real cost of renting and buying over time — factoring in equity, appreciation, taxes, upkeep and the opportunity cost of your down payment — and find the year buying breaks even.
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Results update automatically as you type. No account is required.
Enter the details
The home you’d buy
Purchase price, financing and the costs of getting in and out.
Ongoing home costs
The recurring costs of owning, beyond the mortgage.
The rental
What renting a comparable place costs.
Assumptions
How long you’ll stay, and what your cash could earn if invested instead.
Buying becomes cheaper than renting in year 8. After 30 years the net cost of buying is $213,492 versus $824,990 to rent — buying wins by $611,498. This assumes 3% home appreciation and a 6% return on invested cash.
Net cost over time — buying vs renting
Each line is the total cost so far if you left at that year (buying counts recovered equity; renting counts investment growth on your down payment). Where buying dips below renting is your break-even.
Year-by-year comparison
Net cost of buying vs renting each year, alongside the home’s value and the equity you’d recover on sale.
| Year | Buy net cost | Rent net cost | Home value | Sale equity |
|---|---|---|---|---|
| 1 | $55,615 | $21,060 | $412,000 | $70,857 |
| 2 | $74,651 | $42,581 | $424,360 | $86,291 |
| 3 | $93,084 | $64,566 | $437,091 | $102,330 |
| 4 | $110,885 | $87,020 | $450,204 | $119,001 |
| 5 | $128,025 | $109,944 | $463,710 | $136,332 |
| 6 | $144,474 | $133,342 | $477,621 | $154,354 |
| 7 | $160,199 | $157,215 | $491,950 | $173,101 |
| 8 | $175,167 | $181,564 | $506,708 | $192,604 |
| 9 | $189,342 | $206,388 | $521,909 | $212,901 |
| 10 | $202,685 | $231,688 | $537,567 | $234,029 |
| 11 | $215,158 | $257,462 | $553,694 | $256,028 |
| 12 | $226,718 | $283,708 | $570,304 | $278,939 |
| 13 | $237,320 | $310,420 | $587,413 | $302,808 |
| 14 | $246,919 | $337,596 | $605,036 | $327,681 |
| 15 | $255,465 | $365,228 | $623,187 | $353,606 |
| 16 | $262,905 | $393,309 | $641,883 | $380,638 |
| 17 | $269,184 | $421,831 | $661,139 | $408,830 |
| 18 | $274,245 | $450,782 | $680,973 | $438,241 |
| 19 | $278,025 | $480,150 | $701,402 | $468,932 |
| 20 | $280,459 | $509,921 | $722,444 | $500,969 |
| 21 | $281,480 | $540,079 | $744,118 | $534,420 |
| 22 | $281,013 | $570,606 | $766,441 | $569,358 |
| 23 | $278,982 | $601,479 | $789,435 | $605,860 |
| 24 | $275,306 | $632,677 | $813,118 | $644,008 |
| 25 | $269,898 | $664,172 | $837,511 | $683,887 |
| 26 | $262,667 | $695,937 | $862,637 | $725,590 |
| 27 | $253,516 | $727,938 | $888,516 | $769,212 |
| 28 | $242,344 | $760,141 | $915,171 | $814,856 |
| 29 | $229,040 | $792,506 | $942,626 | $862,631 |
| 30 | $213,492 | $824,990 | $970,905 | $912,651 |
About the Rent vs. Buy Calculator
Buying is not automatically “throwing money away on rent,” and renting is not always cheaper — it depends on prices, rates, how long you stay, and what your cash could earn elsewhere. This calculator compares the true net cost of each path over time and finds the break-even year when buying overtakes renting.
How it works
For buying, it adds up your upfront cash (down payment plus closing costs) and every carrying cost — mortgage, property tax, insurance, maintenance and HOA — then subtracts the equity you would recover if you sold, based on appreciation and selling costs. For renting, it totals the rent you pay (rising each year) and subtracts the investment growth on the cash you did not tie up in a down payment. Comparing the two lines reveals when, if ever, buying becomes the cheaper choice.
Why the break-even matters
Buying carries large upfront and exit costs, so it usually loses in the early years and wins later once equity and appreciation outweigh those costs. If you expect to move before the break-even year, renting is typically the smarter financial move; stay past it and buying pulls ahead. The break-even is highly sensitive to appreciation, rent growth and your assumed investment return.
What it does and doesn’t include
The model captures the opportunity cost of your down payment, home appreciation, and transaction costs — the factors that dominate the decision. To stay transparent it does not model income-tax effects (such as mortgage-interest or property-tax deductions), PMI, or reinvesting every monthly cost difference, all of which can shift the result. Treat the output as a well-reasoned estimate, not a precise forecast.
Important disclaimer
⚠ Disclaimer: This calculator is for general education and planning only and is not financial, tax, or real-estate advice. Results depend heavily on assumptions about appreciation, rent growth and investment returns, which are uncertain. Consult qualified professionals before a home purchase.
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Mortgage Calculator · Refinance Calculator · Investment Calculator · Real Return Calculator
Rent vs. Buy FAQ
Is it better to rent or buy?
It depends on how long you stay and your local costs. Buying has high upfront and selling costs, so renting is usually cheaper short-term while buying wins after the break-even year. This tool shows exactly when that crossover happens for your numbers.
What is the break-even point in rent vs. buy?
It is the year at which the total net cost of buying falls below the total net cost of renting. Before it, renting is cheaper; after it, buying is. Move before break-even and you generally lose money by buying.
Why include the opportunity cost of the down payment?
Cash used for a down payment could otherwise be invested. A fair comparison credits the renter with the investment growth on that money, since the buyer’s cash is locked into the home instead.
What appreciation rate should I use?
US home prices have averaged very roughly 3–4% a year long term, but it varies widely by market and period. Because results are sensitive to this figure, test a conservative and an optimistic rate.
Does this include tax benefits of owning?
No. To stay simple and transparent it excludes mortgage-interest and property-tax deductions and PMI. Those can make buying somewhat more attractive, so treat the result as a baseline.
Why does buying look expensive early on?
Closing costs, the down payment, and 5–6% selling costs are large and front-loaded. It takes several years of equity building and appreciation to earn them back, which is why buying tends to win only over longer horizons.
Is this rent vs. buy calculator free?
Yes. It is free, needs no sign-up, and runs entirely in your browser.