Mortgage Today
All calculators

Rent vs Buy

Compare the long-run financial outcome of renting versus buying. We model the down payment as money the renter could invest instead.

Your numbers

$
$
%
%

Illustrative example rate. Not an available or quoted rate.

yrs
%

Annual, as % of home price

%

Annual, as % of home price

%

Annual, as % of home price

%

Annual assumption

%

What the down payment would earn if invested

%
%

Plain-English summary

Over the next 30 years, renting and investing the difference comes out ahead in this scenario. The math is sensitive to your assumed rent growth, home appreciation, and investment return.

Year 5
Rent +$66,749
Year 7
Rent +$75,011
Year 10
Rent +$84,782

Monthly ownership

Mortgage payment (P&I)$3,065
Total monthly cost$4,180
Cash needed at closing$63,000
Results are estimates based on user inputs and do not represent loan terms, APR, or a financing offer. Pre-filled values are illustrative examples, not available or quoted rates. Actual terms depend on credit, property, program, and underwriting. Every result applies to the entered planning scenario, not an observation period or local market statistic. Replace price, tax, insurance and fee allowances with dated, property-specific figures. Missing inputs are not assumed to be zero.

Keep a free guide for your next step

Plan your budget and next steps with the free fillable First-Time Buyer Playbook. No email or signup required.

Download free guide (PDF)

Want a plain-English walkthrough? Rent vs buy decision guide.

Related calculators

More buying a home calculators

See all

Mortgage Payment Calculator

Estimate your full monthly payment including principal, interest, taxes, insurance, HOA, and PMI.

Calculate payment

Affordability Calculator

See the home price you can comfortably afford based on income, debts, and target debt-to-income ratio.

Check affordability

Closing Costs Calculator

Estimate the cash you will need at the closing table beyond your down payment.

Estimate closing costs

Can I Qualify?

Walk through the qualification questions a loan officer asks first to get a directional answer.

Use can i qualify? calculator

Frequently asked questions

When does buying beat renting?
Generally when you'll be in the home long enough that equity build and tax benefits outweigh transaction costs. The break-even is usually 3–5 years depending on the market.
Why include maintenance costs?
Owning a home costs about 1% of the home's value per year in maintenance on average. Renters don't pay that, the landlord does. Leaving it out makes buying look better than it is.

Related glossary terms

Was this helpful?

Was this helpful?

Related reading

Want the story behind the numbers?

  • ArticleHow much house can you actually afford?If buying wins, this sets the realistic price ceiling.Read
    Try: Affordability
  • ArticleHow much do you need for a down payment?Reality-check the cash side of the buy scenario.Read
    Try: Closing costs
  • HubFirst-time buyer hubWhat actually happens after you decide to buy.Read
Related calculators

More buying a home calculators

See all

Mortgage Payment Calculator

Estimate your full monthly payment including principal, interest, taxes, insurance, HOA, and PMI.

Calculate payment

Affordability Calculator

See the home price you can comfortably afford based on income, debts, and target debt-to-income ratio.

Check affordability

Closing Costs Calculator

Estimate the cash you will need at the closing table beyond your down payment.

Estimate closing costs

Can I Qualify?

Walk through the qualification questions a loan officer asks first to get a directional answer.

Use can i qualify? calculator