Rent vs. Buy Calculator
Compare the financial benefits of renting versus buying a home with our comprehensive calculator. Make an informed decision based on your specific financial situation.
Category: Financial
Home Purchase Information
20.0% of home price
Typically 1% of home value annually
Rental Information
General Assumptions
Rate of return if you invest the down payment (if renting) or the difference in monthly payments
Frequently Asked Questions
Is it better to rent or buy a home?
Whether it's better to rent or buy depends on various factors including how long you plan to stay in the home, the housing market in your area, your financial situation, and lifestyle preferences. Generally, buying becomes more financially advantageous the longer you stay in a home (typically beyond 5-7 years), while renting offers more flexibility and fewer maintenance responsibilities.
What costs should I consider when comparing renting vs. buying?
When renting, consider monthly rent, renter's insurance, security deposits, and potential rent increases. When buying, consider mortgage payments, property taxes, homeowners insurance, mortgage insurance, maintenance costs, HOA fees, closing costs, down payment, and potential home appreciation or depreciation.
How does the length of time I plan to stay affect the rent vs. buy decision?
The longer you plan to stay in a home, the more likely buying becomes financially advantageous. This is because the initial costs of buying (down payment, closing costs) are spread over more years, and you have more time to build equity and benefit from property appreciation. If you plan to move within a few years, renting is often more cost-effective due to the flexibility and lower upfront costs.