Should you rent or buy?
Enter your numbers. We compare buying vs renting + investing the savings.
Start with a scenario
How long will you stay?
Rent.
Saves $51,077 over 10 years
Never
Breakeven
$1,107
Monthly gap
87%
Yr 1 interest
Buy If you buy a home
Rent If you keep renting
+ Advanced settings
Monthly cost comparison
Buying costs $0/mo more than renting
That difference gets invested in a diversified portfolio if you rent. Over time, it compounds.
Where your mortgage payment goes
In Year 1, 0% of your payment is interest
Most of your early payments go to the bank, not to building equity. The ratio flips over time, but it takes years.
Interest · $0 Principal · $0
Net worth over time
Buy (equity) vs Rent + invest the difference
The renter's investment portfolio grows faster early on, but the homeowner's equity catches up if you stay long enough.
Total buying hidden costs $0
Total renting hidden costs $0
What if things change?

The rewards that don't show up in a spreadsheet.

Why owning feels different
Why renting has its own wins
RENT

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The True Cost of Renting vs Buying a Home

Most rent vs buy calculators only compare your monthly mortgage payment to rent. But the real decision involves dozens of hidden costs on both sides — closing costs, maintenance, property tax growth, opportunity cost of your down payment, broker fees, and more. This calculator models all of them over a 30-year horizon so you can make a fully informed decision.

Enter your local home price, monthly rent, and mortgage rate to get a personalized side-by-side comparison. Adjust assumptions like home appreciation, rent increases, and investment returns to see how different scenarios play out. The what-if toggles let you stress-test your decision against job loss, market downturns, or rate changes.

Frequently Asked Questions

Is it cheaper to rent or buy a home?

It depends on home price, rent, mortgage rates, how long you stay, and local market conditions. Generally, buying becomes cheaper the longer you stay due to building equity, but renting and investing the savings can win in expensive markets or short time horizons. This calculator compares both paths including hidden costs most tools ignore.

How long do you need to own a home before buying is worth it?

The breakeven point typically ranges from 3 to 10 years depending on your market. High closing costs, selling costs, and the interest-heavy early years of a mortgage mean you need to stay long enough for equity growth to offset these costs. Use the horizon slider above to find your breakeven year.

What are the hidden costs of buying a home?

Hidden costs include closing costs (2–5% of home price), mortgage interest (especially in early years when most of your payment goes to interest, not principal), maintenance and repairs (1–2% of home value annually), property taxes that increase over time, HOA fees and special assessments, home insurance, and selling costs (5–8%) when you eventually move.

What are the hidden costs of renting?

Renters face their own hidden costs: broker fees in competitive markets, rent increases that compound year over year, moving costs every few years, no equity building, dependence on landlord decisions, and lifestyle constraints. This calculator models six categories of renting hidden costs alongside seven for buying.

Should I invest my down payment instead of buying?

If you rent and invest the money you would have spent on a down payment, closing costs, and the difference between your rent and what a mortgage payment would be, that investment portfolio can grow significantly over time. Whether it beats homeownership depends on investment returns vs home appreciation in your area, your tax situation, and how long you plan to stay.

How does this calculator work?

The calculator runs a year-by-year simulation for both scenarios. For buying, it models mortgage amortization, property tax growth, maintenance costs, PMI, tax benefits from itemized deductions, and home equity growth. For renting, it models rent increases and investment of the savings (down payment + monthly difference) into a diversified portfolio. It then compares your total net worth under each path.