Rent vs. Buy Calculator
What actually decides rent versus buy
Buying front-loads costs — down payment, closing costs, interest — and recovers much of it through equity when you sell. Renting is simpler money: a predictable monthly cost with nothing recovered. The breakeven therefore hinges on how long you stay: transaction costs need years of ownership to amortize, which is why short stays usually favor renting and long stays favor buying, with appreciation and relative rent levels shifting the line.
Frequently Asked Questions
Why does the owning side ignore taxes and maintenance?
Those vary enormously by location and home — property tax from 0.2% to 2.5% of value per year, upkeep from 1% upward. Add your own yearly estimate to the buying total before acting on the result.
Does this account for investing the down payment instead?
No. Money not tied up in a down payment could earn returns elsewhere, which favors renting; guaranteed "return" from avoided interest favors buying. Run both scenarios if the result is close.