The honest math — accounting for opportunity cost, appreciation, maintenance, and equity — not just monthly payment comparisons.
This tool doesn't just compare monthly payments — it factors in opportunity cost of your down payment, equity built, maintenance costs, and rent increases over your chosen time horizon.
Your down payment invested in the stock market instead could generate significant returns. This calculator compares building home equity vs investing that money — the full financial picture.
Buying almost always wins over 30 years. Renting often wins over 2 years. The break-even year is the critical number — and it's different for every market and situation.
Budget 1–2% of home value annually for maintenance, repairs, and unexpected costs. This significantly changes the buy calculation vs the clean monthly rent figure.
The rent vs buy debate is one of the most personal financial decisions anyone makes. The popular narrative says "renting is throwing money away" — but that's a massive oversimplification. The truth is more nuanced and depends heavily on your local market, how long you plan to stay, and what you'd do with your down payment otherwise.
Simple rent vs buy comparisons only look at monthly payment (rent) vs mortgage payment (buy). A proper comparison must include: down payment opportunity cost, property taxes, home insurance, maintenance costs (1–2%/year), HOA fees, closing costs, and rent increases over time. Only then do you get an honest answer.
Every rent vs buy situation has a break-even year — the point at which cumulative buying costs equal cumulative renting costs. Before that year, renting is cheaper. After it, buying wins. In expensive cities like San Francisco or NYC, the break-even can be 10+ years. In affordable markets, it might be 3–4 years.