Is buying always better than renting long-term?

Not necessarily — it depends heavily on how long you stay, local price-to-rent ratios, and opportunity cost. Buying tends to favor longer holding periods (5+ years), since upfront transaction costs get spread over more time.

What costs does this calculator include for buying?

Down payment, mortgage principal and interest, property tax, homeowners insurance, and maintenance, along with estimated home appreciation over your holding period.

Rent vs. Buy Calculator

Compare the long-term financial outcome of buying a home vs. renting and investing the difference.

Buying

Home price

Down payment (%)

Mortgage rate (annual %)

Mortgage term (years)

Property tax (annual % of home value)

Homeowners insurance (annual $)

Maintenance (annual % of home value)

Expected home appreciation (annual %)

Renting

Monthly rent (equivalent home)

Annual rent increase (%)

Investment return if renting (annual %)

How many years will you stay?

Buying comes out ahead by$75,560

Monthly mortgage payment (P&I)$2,023

Est. home value after 7 years$508,912

Net position if buying$263,165

Net position if renting + investing$187,605

This is a simplified comparison — it doesn't account for tax deductions on mortgage interest, selling costs, or exact loan amortization. Use it to compare scenarios, not as a precise forecast.

Renting versus buying isn't just a lifestyle choice — it's a financial comparison that depends heavily on how long you plan to stay, local home prices relative to rent, and what you'd otherwise do with the money you're not spending on a down payment. This calculator models both paths over your expected holding period, including home appreciation, rising rent, and the return a renter could earn by investing the difference instead.

Frequently asked questions

This calculator provides an estimate for general informational purposes only and is not tax or financial advice. Actual results may vary based on deductions, credits, benefits, and local tax rules. Consult a licensed tax professional or financial advisor for guidance specific to your situation.