Rent Vs Buy Calculator 2026 | Should You Rent Or Buy?

Rent vs Buy Calculator

Compare the estimated long-term cost of renting versus buying over the same time horizon—and see where home equity, appreciation, rent growth, and opportunity cost change the picture.

2 pathsone clear timeline

30 yearsmaximum view

100% privatecalculated in-browser

Build your scenario

Use reasonable estimates. You can change any assumption and recalculate without leaving the page.

A clearer way to think about rent vs buy

A mortgage payment is only one line in the buying scenario. This calculator puts the major cash flows on the same timeline so you can test the decision with more context.

How to use the calculator

Enter the expected home price and down payment.
Add the mortgage rate, term, taxes, insurance, HOA, and maintenance assumptions.
Enter current rent, expected rent growth, and renter's insurance.
Choose an investment return assumption for money that remains invested.
Select a holding period, then review break-even, costs, equity, and the table.

When a value is uncertain, use a conservative, base, and optimistic case rather than pretending the estimate is exact.

What the model includes

Buying includes the down payment, closing costs, mortgage principal and interest, property tax, insurance, HOA, maintenance, PMI, appreciation, remaining mortgage balance, and selling costs.

Renting includes escalating rent, renter's insurance, upfront costs, and a modeled investment portfolio for capital that is not tied up in the home. When monthly buy costs exceed rent, the difference is invested; when rent is higher, the renter portfolio funds the gap.

Benefits of comparing both paths

Compare both scenarios using one holding period.
See hidden ownership costs beyond the mortgage.
Understand how rent increases and appreciation compound.
Estimate the opportunity cost of a down payment.
Identify a potential break-even point instead of relying on a monthly-payment shortcut.
Test assumptions before making a large, personal decision.

Pros and cons are personal

Renting can offer: flexibility, lower upfront commitment, liquidity, and less responsibility for some property expenses. Trade-offs include rent increases, no direct home equity, less control, and dependence on lease terms.

Buying can offer: potential equity accumulation, appreciation, more control, payment stability with fixed-rate financing, and long-term ownership benefits. Trade-offs include upfront costs, interest, taxes, maintenance, selling costs, reduced mobility, and market risk.

Assumptions and limitations

Future appreciation, rent increases, maintenance, investment returns, and economic conditions cannot be known precisely. Results depend on local housing prices, actual mortgage terms, taxes, insurance, selling costs, investment performance, and your plans. Break-even means the modeled net-cost paths cross under the assumptions entered; it is not a guarantee that buying is better after that date.