Rent vs. Buy Calculator
Make the right housing decision • 2026 rates
Quick Answer
Buy if: You plan to stay ≥5 years, have 20% down, and can afford 28% of income on housing. Rent if: Mobility matters, uncertain income, or <5 years.
Rental Details
Home Purchase Details
Advanced Options
Rent vs Buy Analysis
$189,000.00
Total Renting Cost (5 years)
$198,000.00
Total Buying Cost (5 years)
$60,000.00
Home Equity Gain
Renting is cheaper
Financial Decision
| Category | Renting | Buying | Difference |
|---|---|---|---|
| Initial Costs | $3,000 | $85,000 | $82,000 |
| Monthly Payments | $1,525 | $1,820 | $295 |
| 5-Year Total | $189,000 | $198,000 | $9,000 |
| Home Equity | $0 | $60,000 | $60,000 |
| Net Difference | - | - | $51,000 |
| Factor | Renting | Buying | Advantage |
|---|
Rent vs Buy Guide
When to Rent
Rent if you plan to stay less than 5 years, have uncertain income, or need mobility.
When to Buy
Buy if you plan to stay 5+ years, have stable income, and can afford 20% down.
Key Considerations:
- Transaction costs (3-6% of home value)
- Opportunity cost of down payment
- Market appreciation vs rent growth
- Personal financial stability
Strategies
Cost Analysis
Consider total cost of ownership vs total rental costs over your expected tenure.
Investment Opportunity
- Calculate opportunity cost of down payment
- Compare home appreciation to investment returns
- Factor in tax benefits of homeownership
- Consider inflation protection
Considerations:
- Transaction costs (3-6% of home value)
- Opportunity cost of down payment
- Market appreciation vs rent growth
- Personal financial stability
FAQ
Q: How long should I plan to stay to make buying worth it?
A: Typically 5+ years to offset transaction costs. With 5% down, need 7-10 years. With 20% down, break-even is ~5 years.
Q: What if home prices don't appreciate?
A: Even without appreciation, buying provides stability, tax benefits, and forced savings through equity buildup.
About
Financial Team
This calculator was created
This calculator was created by our Financial Calculators Team , may make errors. Consider checking important information. Updated: April 2026.