Rent vs Buy Calculator

Rent vs Buy compares the total cost of renting against the total cost of buying over time.

Monthly cost of buying includes:

• Mortgage payment (P&I) — calculated using standard amortization
• Property tax — typically 1–2% of home value per year
• Home insurance — typically 0.3–0.5% of home value per year
• Maintenance — budget ~1% of home value per year
• PMI — if down payment < 20%, typically 0.5–1% of loan per year

Monthly cost of renting includes:

• Monthly rent
• Renter’s insurance (~$15–30/month)

The break-even calculation: The break-even point is when the total cost of buying (minus equity built) equals the total cost of renting (plus the investment return you’d get on a down payment).

Key factors:

• How long you plan to stay (buying usually wins after 5–7 years)
• Local rent-to-price ratio
• Mortgage interest rates
• Home appreciation rate
• Your opportunity cost (what you’d earn investing the down payment)