Renting
Buying
Rent vs Buy Calculator
Enter your details below to compare the true long-term costs of renting an apartment versus buying a home.
What this calculator helps you understand
Buying isn't always cheaper than renting in the short term. This tool compares the cumulative out-of-pocket costs over time. It factors in your down payment, closing costs, property taxes, maintenance, and expected rent increases to find your break-even point.
Hidden Costs & Fees
Property taxes vary by location. Use this lookup to help estimate your local property tax rate, then enter the percentage above.
A common rule of thumb is to budget about 1% to 1.5% of the home's value per year for maintenance and repairs.
How to Compare Renting vs Buying
The decision to rent or buy is one of the biggest financial choices you'll make. It's not just about comparing a rent payment to a mortgage payment.
Costs People Often Forget
When renting, your landlord covers maintenance, property taxes, and most repairs. When you buy, you are responsible for everything. A new roof, a broken HVAC system, or rising property taxes can drastically change your monthly budget. Always factor in 1-2% of the home's value annually for maintenance.
Factors That Influence Your Decision
Location dictates property taxes and insurance rates. Your time horizon is critical—if you plan to move in less than 5 years, the high upfront closing costs of buying usually make renting the smarter financial move. Interest rates also heavily impact your buying power.
Understanding Break-Even Points
The break-even point is the moment when the total cost of renting surpasses the total cost of buying.
In the first few years of homeownership, buying is almost always more expensive due to closing costs (2-5% of the purchase price) and the fact that early mortgage payments go mostly toward interest, not principal. However, as rent increases year over year, your fixed-rate mortgage payment stays the same (though taxes and insurance may rise). Eventually, the lines cross.
Explore More Tools
Looking to understand your purchasing power? Check theHouse Poor Risk Calculator, calculate your expected monthly payment with the Mortgage Calculator, or evaluate all hidden homeownership expenses using the Full Home Cost Calculator.