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🔑 Should I Rent or Buy?

A real comparison of the true long-term cost of each path — not just monthly payment vs rent.

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Rent vs Buy Calculator

Compare both paths over your real timeline

Your Situation
$
$
$100K$1.5M
$
%
yr
120
%
The Numbers
Net Cost Difference Over Your Stay
Total Cost of Renting
Total Cost of Buying (after equity)
Breakeven Point
Home Equity Built
Our Recommendation
Calculating...

Scenario Analysis

Net financial outcome under different conditions

Best Case (Buy)
Higher appreciation, rates stay favorable, you stay the full term
Expected
Based on your numbers above
Worst Case (Buy)
Lower appreciation, you move earlier than planned

Personalized Insights

Recommended Next Steps

When Renting Beats Buying (And Vice Versa)

The breakeven point — the number of years it takes for buying to become cheaper than renting — typically falls between 4-7 years in most markets. Stay shorter than that and renting usually wins once you account for closing costs, agent fees, and the slow pace of early-mortgage equity building.

Buying isn't just about the monthly payment — it's about building equity in an appreciating asset versus paying someone else's mortgage. But that math only works in your favor if you stay long enough to absorb the transaction costs on both ends (roughly 8-10% of home value combined for buying and eventually selling).

Renting buys flexibility and predictability. No surprise repair bills, no property tax increases, easy to relocate for a job. That flexibility has real value, especially during uncertain life phases — early career, before starting a family, or in a city you're not sure you'll stay in long-term.

01
Enter Your Numbers
Rent, home price, down payment and how long you'll stay.
02
See Your Recommendation
A clear verdict based on your specific timeline.
03
Review Scenarios
How the math changes if you stay shorter or longer than planned.
04
Take Action
Specific next steps based on which path wins for you.

Frequently Asked Questions

Is renting really "throwing money away"?
No — rent pays for housing, flexibility, and predictable costs, just like buying pays for housing plus equity and tax benefits. Neither is inherently wasteful; the right choice depends on your timeline and goals.
What costs do people forget when buying?
Closing costs (2-5% of price), ongoing maintenance (~1% of home value/year), property tax, homeowners insurance, and selling costs (5-6% agent commission) when you eventually move.
Does this calculator account for tax benefits of owning?
This version focuses on cash flow and equity comparison. Mortgage interest deduction can improve buying's case further depending on your tax situation and whether you itemize deductions.
What if home prices don't appreciate as expected?
Check the worst-case scenario above — it models lower appreciation. Real estate doesn't always go up, and over-leveraging into a home you can't easily sell is a real risk worth taking seriously.

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