Housing calculator

Rent vs. buy calculator

Enter your home price, mortgage rate, and how long you plan to stay — see your break-even year and the net financial advantage of buying vs. renting over your exact timeline.

Includes opportunity cost of down payment Accounts for taxes, maintenance & appreciation Calculates your personal break-even year
Enter your numbers Housing · 2026
Net advantage of buying
+$42K
buying saves over 7 years vs. renting
✓ Buy wins at this horizon
Break-even
Year 6
Monthly payment
$2,017
Equity built
$156K

How to read your results

The net advantage compares two scenarios over your time horizon: (1) buying the home, and (2) renting and investing your down payment in the stock market. It accounts for equity built, mortgage interest, property taxes, maintenance, and the opportunity cost of your down payment.

The break-even year is when cumulative buying costs drop below renting costs. Before that year, renting is cheaper. After it, buying wins — and the gap grows the longer you stay.

2026 context: With rates around 6.5–7%, the national average break-even is 6–8 years — up from 4–5 years in 2021. Your time horizon is the single most important input in this calculator.

What this calculator doesn't include

  • PMI — if your down payment is under 20%, add 0.5–1.5% of the loan amount annually until you reach 20% equity.
  • Mortgage interest deduction — if you itemize taxes, some interest is deductible, modestly improving the buying case.
  • Rent control — in cities with strong rent stabilization, the rent increase assumption matters a lot. Adjust accordingly.
  • Emotional value — stability, customization, and community are real factors that can't be calculated.

When renting is the smarter move

Buying isn't always better, even over long horizons. Renting typically wins when you're in a high price-to-rent ratio market (above 25), planning to move within 4 years, or when the invested down payment significantly outperforms home appreciation in your area.