# Should I Rent or Buy > A free rent vs buy calculator and plain-English guides that show the year buying pulls ahead of renting, using your own numbers. Source site: https://shouldirentorbuy.org/ Updated: 2026-11-12 Standard followed: https://llmbestpractices.com # Rent vs buy calculator Source: https://shouldirentorbuy.org/ # Rent vs buy calculator Should I rent or buy? Enter your own numbers. The calculator compares what you would be worth each year if you bought a home and sold it, against renting and investing the money you did not spend on owning. It runs in your browser and saves nothing. ## Your result Buying pulls ahead in year 9 $2,873 Cost to own in month one: payment, tax, insurance, HOA, maintenance, and PMI if any. $2,215 Rent plus renters insurance in month one. $2,023 Principal and interest each month. $92,000 Cash at closing: down payment plus closing costs. After 10 years, buying leaves you about $234,029 after selling costs and paying off the loan. Renting and investing the difference leaves about $222,268. | Year | Buy | Rent | Ahead | | --- | --- | --- | --- | | 1 | $70,857 | $104,787 | Rent +$33,930 | | 2 | $86,291 | $117,665 | Rent +$31,373 | | 3 | $102,330 | $130,621 | Rent +$28,291 | | 4 | $119,001 | $143,643 | Rent +$24,642 | | 5 | $136,332 | $156,717 | Rent +$20,385 | | 6 | $154,354 | $169,826 | Rent +$15,472 | | 7 | $173,101 | $182,955 | Rent +$9,854 | | 8 | $192,604 | $196,085 | Rent +$3,480 | | 9 | $212,901 | $209,196 | Buy +$3,705 | | 10 | $234,029 | $222,268 | Buy +$11,761 | Net worth by year (selected years when the stay is long) ## How to read the result The year buying pulls ahead is the break-even point. If you expect to move before then, renting is likely the cheaper choice on these numbers. If you expect to stay well past it, buying is likely to build more wealth, assuming the inputs hold. The model counts every owner cost you enter, the cash you tie up at closing, and what that cash could have earned if invested. It does not count income-tax effects, and it does not predict prices. See the [method](https://shouldirentorbuy.org/method/) for each step. Example inputs only. Your numbers will move the crossing point. ## Questions ### Is this rent vs buy calculator free? Yes. It runs in your browser. Calculator inputs stay in your browser. The optional inquiry form is the only thing sent. ### Why does renting win in the first years? Buying has large one-time costs: the down payment and closing costs up front, and selling costs when you leave. Early on, most of each mortgage payment is interest. It takes time for appreciation and principal paydown to cover those costs. ### Are the default numbers today’s market rates? No. They are example inputs so the tool shows a result when it loads. Replace the rate with a quote from a lender and the price, taxes, and rent with numbers for your area. ## Talk to a real estate professional Want a person to look at renting or buying with you? Send an inquiry from the calculator page. This site does not name an agent or promise a call. For loan terms, the [CFPB’s homebuyer tools](https://www.consumerfinance.gov/owning-a-home/) explain how to compare official Loan Estimates. The inquiry asks for a name, an email or a phone number, and optional notes: rent or buy interest, city or area, timing, and a message. Numbers typed into the calculator stay in the browser. --- # Rent vs buy: how to compare them fairly Source: https://shouldirentorbuy.org/guides/rent-vs-buy/ # Rent vs buy: how to compare them fairly A rent vs buy decision is a comparison of two sets of costs you never get back, plus what your savings could earn in the meantime. Last reviewed November 11, 2026. ## Compare costs that never come back Rent is the obvious unrecoverable cost of renting. Owning has its own: mortgage interest, property tax, homeowners insurance, maintenance, HOA dues, private mortgage insurance on a small down payment, and the transaction costs of buying and later selling. Principal is different, because it builds equity you keep when you sell. The CFPB notes that private mortgage insurance is usually required on a conventional loan with less than 20 percent down, and that it protects the lender, not you. [1](#fn1) Month-one costs with the calculator’s example inputs. ## Time in the home matters most Closing costs and selling costs are paid once each. Spread over two years they are heavy; spread over twelve they are light. That is why the calculator reports the year buying pulls ahead. If you are likely to move before that year, renting usually wins on the numbers. ## Count what your cash could earn A down payment is money that could otherwise be invested. A fair comparison gives the renter that money to invest, along with any month when renting is cheaper than owning. The calculator does this, and gives the buyer the savings in months when owning is cheaper. ## Beyond the math - Stability: owning lets you stay as long as you can pay; renting depends on a lease. - Flexibility: renting makes a job move or a change in household easier. - Risk: owners carry repair bills and price swings; renters carry rent increases. - Readiness: lenders look at your debt-to-income ratio, which the CFPB defines as monthly debt payments divided by gross monthly income. [2](#fn2) ## Questions ### Is it always better to buy than to rent? No. Renting can come out ahead when you will move within a few years, when homes cost a lot relative to rents in your area, or when owner costs such as tax, insurance, and HOA dues are high. ### Is rent just throwing money away? Rent buys housing, flexibility, and someone else carrying repair risk. Owning has unrecoverable costs too: interest, property tax, insurance, maintenance, and the costs of buying and selling. The fair comparison is unrecoverable cost against unrecoverable cost. Next: [Should I rent or buy? A checklist](https://shouldirentorbuy.org/guides/should-i-rent-or-buy/) · [Run the calculator](https://shouldirentorbuy.org/) 1. CFPB, “What is private mortgage insurance?”, [https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/](https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/), read November 11, 2026. [↩](#r1) 1. CFPB, “What is a debt-to-income ratio?”, [https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/](https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/), read November 11, 2026. [↩](#r2) ## On this page - [Unrecoverable costs](#unrecoverable) - [Time in the home](#time) - [Opportunity cost](#opportunity) - [Beyond the math](#beyond) - [Questions](#faq-title) If you want a person to talk through renting or buying where you live, [talk to a real estate professional](https://shouldirentorbuy.org/#talk). The form is an inquiry only. This site does not name an agent or promise a call. --- # Should I rent or buy? A 10-question checklist Source: https://shouldirentorbuy.org/guides/should-i-rent-or-buy/ # Should I rent or buy? A 10-question checklist Answer these before you run the numbers. Each one maps to an input in the calculator. 1. How long will I stay? This is the single biggest driver. Put it in “Years you expect to stay.” 1. Do I have the down payment and closing cash without emptying my emergency fund? 1. What rate can I actually get? Use a quote, not a headline average. The CFPB suggests comparing official Loan Estimates from more than one lender. [1](#fn1) 1. Will I pay PMI? Likely on a conventional loan under 20 percent down. [2](#fn2) 1. What are property taxes and insurance for this specific home? Ask for the tax bill and an insurance quote. 1. Are there HOA dues or special assessments? 1. What will maintenance cost? Older homes and big systems near the end of their life cost more. 1. What does a comparable rental cost, and how fast have rents risen where I want to live? 1. What would I do with the cash if I rented? The comparison assumes you invest it. 1. How stable is my income, and what is my debt-to-income ratio? [3](#fn3) Then [run the rent vs buy calculator](https://shouldirentorbuy.org/) and change one input at a time to see which ones swing the answer. ## Questions ### Should I rent or buy if I might move in two years? On most realistic inputs, renting is cheaper over two years because buying and selling costs have little time to be covered. Test your own numbers with the years-you-expect-to-stay field. ### Should I buy if I can only put 5 percent down? You may be able to, but a conventional loan with under 20 percent down usually means private mortgage insurance, and a smaller cushion if prices fall. Enter your real down payment and PMI quote to see the effect. 1. CFPB, “Buying a house: Tools and resources for homebuyers,” [https://www.consumerfinance.gov/owning-a-home/](https://www.consumerfinance.gov/owning-a-home/), read November 11, 2026. [↩](#s1) 1. CFPB, “What is private mortgage insurance?”, [https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/](https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/). [↩](#s2) 1. CFPB, “What is a debt-to-income ratio?”, [https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/](https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/). [↩](#s3) ## Quick rule If you will move before the calculator’s break-even year, renting usually wins. If you will stay well past it and can carry the costs comfortably, buying usually builds more wealth. [Open the calculator](https://shouldirentorbuy.org/) If you want a person to talk through renting or buying where you live, [talk to a real estate professional](https://shouldirentorbuy.org/#talk). The form is an inquiry only. This site does not name an agent or promise a call. --- # The true cost of owning a home Source: https://shouldirentorbuy.org/guides/true-cost-of-owning-a-home/ # The true cost of owning a home The mortgage payment is only part of the bill. Here is each cost, whether you get it back, and where to find a real number. | Cost | Recoverable? | Where to get a real number | | --- | --- | --- | | Principal | Yes, as equity when you sell | Loan Estimate, amortization schedule | | Interest | No | Loan Estimate from each lender | | Property tax | No | County assessor or the listing’s tax history | | Homeowners insurance | No | Quotes from insurers for the address | | PMI | No | Loan Estimate, page 1 (monthly) or page 2 (up front) | | HOA dues | No | HOA budget and disclosures | | Maintenance and repairs | Partly, if they add value | Home inspection report, age of roof and systems | | Closing costs | No | Loan Estimate and Closing Disclosure | | Selling costs | No | Agent agreement, transfer taxes where they apply | Owner costs at a glance The CFPB says a PMI premium appears on page 1 of the Loan Estimate and Closing Disclosure when paid monthly, and on page 2 when paid up front. [1](#fn1) ## Questions ### What costs come with owning besides the mortgage? Property tax, homeowners insurance, maintenance and repairs, HOA dues where they apply, private mortgage insurance on a small down payment, utilities a landlord may have covered, and closing and selling costs. ### How much should I budget for maintenance? There is no official figure. Many budgets use a percentage of home value per year; the calculator’s example uses 1 percent. Older homes, larger homes, and harsh climates usually need more. Related: [Break-even and price-to-rent](https://shouldirentorbuy.org/guides/break-even-and-price-to-rent/) · [Method](https://shouldirentorbuy.org/method/) 1. CFPB, “What is private mortgage insurance?”, [https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/](https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/), read November 11, 2026. [↩](#c1) ## Price it, then test it Put each number into the calculator’s owner-cost fields. Small changes in tax or insurance can move the break-even year. [Open the calculator](https://shouldirentorbuy.org/) If you want a person to talk through renting or buying where you live, [talk to a real estate professional](https://shouldirentorbuy.org/#talk). The form is an inquiry only. This site does not name an agent or promise a call. --- # Break-even and the price-to-rent ratio Source: https://shouldirentorbuy.org/guides/break-even-and-price-to-rent/ # Break-even and the price-to-rent ratio Two quick lenses on the same question: how long until buying wins, and how expensive homes are compared with rents. ## The break-even year The calculator compares two people each year: one who bought and would sell now, and one who rented and invested the difference. The first year the buyer is ahead is the break-even year. With the example inputs it is year 9. ## Price-to-rent ratio Divide the price by twelve months of rent for a similar home. The example is $400,000 ÷ ($2,200 × 12) ≈ 15.2. It is a screening number only. It ignores rates, taxes, and how long you will stay. ## What moves the break-even year - Mortgage rate: higher rates push it later. - Home value growth: faster growth pulls it earlier. - Rent growth: faster rent increases pull it earlier. - Investment return: a higher return on the renter’s savings pushes it later. - Closing and selling costs: higher costs push it later. ## Questions ### What is the price-to-rent ratio? Home price divided by a year of rent for a comparable home. A $400,000 home that would rent for $2,200 a month has a ratio of about 15. Higher ratios mean homes are expensive relative to rents, which tends to favor renting. ### Is there a magic break-even number of years? No. The break-even year depends on the rate, down payment, owner costs, rent growth, home value growth, and investment return. Rules of thumb such as five years are starting points, not answers. ## On this page - [Break-even year](#breakeven) - [Price-to-rent](#ratio) - [What moves it](#levers) If you want a person to talk through renting or buying where you live, [talk to a real estate professional](https://shouldirentorbuy.org/#talk). The form is an inquiry only. This site does not name an agent or promise a call. --- # Method Source: https://shouldirentorbuy.org/method/ # Method The calculator runs month by month. Every step is listed here. Last reviewed November 11, 2026. 1. Payment. Loan = price × (1 − down %). Monthly payment uses the standard amortization formula for the rate and term. 1. Cash at closing. Down payment + closing costs (% of price). The renter is assumed to invest this amount instead. 1. Each month, owner cost = principal and interest + property tax (% of current value ÷ 12) + insurance ÷ 12 + HOA + maintenance (% of current value ÷ 12) + PMI. 1. PMI applies only when the down payment is under 20 percent, as % of the original loan per year, until the balance falls to 80 percent of the purchase price. 1. Renter cost = rent (raised once a year by the rent-increase rate) + renters insurance ÷ 12. 1. Invest the difference. Whichever side is cheaper that month invests the difference. Both portfolios grow monthly at the return you enter. 1. Net worth at each year end. Buyer = home value × (1 − selling %) − loan balance + buyer’s portfolio. Renter = renter’s portfolio. 1. Break-even year = the first year the buyer’s net worth is at least the renter’s. ## What is left out - Income taxes, including the mortgage interest deduction and capital gains rules. - Refinancing, extra payments, and changes in rate after closing. - Moving costs and differences in utilities between the two homes. ## Questions ### Does the calculator include the mortgage interest deduction? No. Tax effects depend on whether you itemize, your bracket, and current law. Leaving them out keeps the tool honest; ask a tax professional how they apply to you. ### Does it predict home prices? No. Home value growth is an input you choose. Try a low, middle, and high value to see the range. ## Example inputs Price $400,000, 20% down, 6.5% for 30 years, tax 1.1%, insurance $1,800 a year, maintenance 1.0%, closing 3.0%, selling 6.0%, home growth 3.0%, rent $2,200 rising 3.0%, return 5.0%. These are illustrations, not market data. If you want a person to talk through renting or buying where you live, [talk to a real estate professional](https://shouldirentorbuy.org/#talk). The form is an inquiry only. This site does not name an agent or promise a call. --- # FAQ Source: https://shouldirentorbuy.org/faq/ # Rent vs buy questions Short answers that match the calculator and the method page. ### Is this rent vs buy calculator free? Yes. It runs in your browser. Calculator inputs stay in your browser. The optional inquiry form is the only thing sent. ### Why does renting win in the first years? Buying has large one-time costs: the down payment and closing costs up front, and selling costs when you leave. Early on, most of each mortgage payment is interest. It takes time for appreciation and principal paydown to cover those costs. ### Are the default numbers today’s market rates? No. They are example inputs so the tool shows a result when it loads. Replace the rate with a quote from a lender and the price, taxes, and rent with numbers for your area. ### Is it always better to buy than to rent? No. Renting can come out ahead when you will move within a few years, when homes cost a lot relative to rents in your area, or when owner costs such as tax, insurance, and HOA dues are high. ### Is rent just throwing money away? Rent buys housing, flexibility, and someone else carrying repair risk. Owning has unrecoverable costs too: interest, property tax, insurance, maintenance, and the costs of buying and selling. The fair comparison is unrecoverable cost against unrecoverable cost. ### Should I rent or buy if I might move in two years? On most realistic inputs, renting is cheaper over two years because buying and selling costs have little time to be covered. Test your own numbers with the years-you-expect-to-stay field. ### Should I buy if I can only put 5 percent down? You may be able to, but a conventional loan with under 20 percent down usually means private mortgage insurance, and a smaller cushion if prices fall. Enter your real down payment and PMI quote to see the effect. ### What costs come with owning besides the mortgage? Property tax, homeowners insurance, maintenance and repairs, HOA dues where they apply, private mortgage insurance on a small down payment, utilities a landlord may have covered, and closing and selling costs. ### How much should I budget for maintenance? There is no official figure. Many budgets use a percentage of home value per year; the calculator’s example uses 1 percent. Older homes, larger homes, and harsh climates usually need more. ### What is the price-to-rent ratio? Home price divided by a year of rent for a comparable home. A $400,000 home that would rent for $2,200 a month has a ratio of about 15. Higher ratios mean homes are expensive relative to rents, which tends to favor renting. ### Is there a magic break-even number of years? No. The break-even year depends on the rate, down payment, owner costs, rent growth, home value growth, and investment return. Rules of thumb such as five years are starting points, not answers. ### Does the calculator include the mortgage interest deduction? No. Tax effects depend on whether you itemize, your bracket, and current law. Leaving them out keeps the tool honest; ask a tax professional how they apply to you. ### Does it predict home prices? No. Home value growth is an input you choose. Try a low, middle, and high value to see the range. ### Can I talk to a real estate professional from this site? You can send an inquiry from the calculator page. It asks for your name, an email or phone number, and optional details such as rent-or-buy interest, city, timing, and a message. The site does not name an agent or a brokerage, and it does not promise that a specific person will call. Numbers you type into the calculator stay in your browser. --- # About and disclaimer Source: https://shouldirentorbuy.org/about/ # About Should I Rent or Buy Should I Rent or Buy publishes a free rent vs buy calculator and short guides that explain the costs behind it. It is an independent site. It is not a lender, a mortgage broker, a real estate brokerage, or a financial adviser, and it does not take applications. ## How the site is funded The site may show clearly labeled advertising. Visitors can also send an optional inquiry if they want to talk with a real estate professional. The inquiry does not change the calculator, and this site does not take loan applications. Disclaimer. Results are estimates based only on the numbers you enter. They are not an offer of credit, a rate quote, or financial, tax, or legal advice. Confirm loan terms on official Loan Estimates and speak with licensed professionals before you decide. Pages were last reviewed on November 12, 2026. ## Talk to a real estate professional Send an inquiry from the calculator page. This site does not name an agent or promise a call. The form is at [https://shouldirentorbuy.org/#talk](https://shouldirentorbuy.org/#talk). ---