Rent vs. Buy Calculator – USA
Know exactly when buying beats renting — backed by real math.
How the Rent vs. Buy Calculator Works
Our calculator provides a detailed financial comparison between renting a property and buying a home. It considers not just the obvious monthly payments, but also the hidden costs and financial benefits associated with both options over time. We analyze your inputs to project the total net cost of each choice year by year, helping you identify the precise moment when one becomes more financially advantageous than the other.
The core of our calculation is the "break-even point" — the year when the total cost of buying becomes less than the total cost of renting. This is visualized in the chart, where you can see the two cost lines intersect.
Explore by State
For a more localized calculation, select your state to pre-fill the calculator with average data for your area, including property taxes, insurance costs, and typical home appreciation rates.
When Buying Makes Sense
Buying a home is often a great long-term investment. It typically makes sense when:
- You plan to stay in one place for a long time. The longer you own, the more you benefit from appreciation and building equity, which can offset the high initial costs.
- You want stable monthly payments. A fixed-rate mortgage ensures your primary housing cost (principal and interest) doesn't change for the life of the loan, unlike rent which can increase annually.
- You want to build wealth. A portion of each mortgage payment goes towards your loan's principal, increasing your equity. Additionally, your home's value may appreciate over time.
When Renting Is Better
Renting offers flexibility and predictability that can be more suitable in certain situations. Renting is often better when:
- You need flexibility. If your job requires you to move frequently or you're uncertain about your long-term plans, renting allows you to relocate with minimal hassle.
- You prefer predictable, lower upfront costs. Renting usually requires a security deposit, which is much less than the down payment and closing costs for a home. Maintenance and repair costs are also covered by the landlord.
- Market conditions are unfavorable for buying. In a housing market with extremely high prices or interest rates, renting can be a financially safer option until conditions improve.