Should you Rent or Buy a Home?
Trying to decide whether it’s better to rent a home or buy one? This website helps you compare both by adding up all the costs over time, not just the monthly payment. You enter a few details about your situation, and we show how renting and buying stack up so you can make a clearer decision.
See the true cost of renting vs buying over time
Include things like taxes, insurance, repairs, and fees
Opportunity cost analysis to see how investments or savings could grow over time
Understand how long you need to stay for buying to make sense
Make a decision based on your own numbers, not rules of thumb
Calculate Your Rent vs Buy Costs
Enter your values below to see a detailed comparison of renting versus buying. Adjust home price, mortgage details, and other parameters to find out which option is better for you.
Property Information
Enter the home price and how long you plan to stay in the property.
The purchase price of the home you're considering
How long do you expect to own this home?
Mortgage Details
Configure your down payment, loan term, and interest rate.
Percentage of home price you'll pay upfront
Number of years to repay the mortgage
Annual mortgage interest rate
Annual private mortgage insurance as percentage of loan amount
Rental Information
Enter rental market details for comparison.
Current monthly rent for an equivalent property
Upfront security deposit (typically one month's rent)
Annual cost of renter's liability insurance
One-time rental broker fee, if applicable
Annual Ownership Costs
Recurring expenses paid each year as a homeowner.
Annual property tax as a percentage of home value
Annual homeowners insurance as a percentage of home value
If applicable, monthly homeowners association fees
Annual maintenance costs as a percentage of home value (typically 1-2%)
Monthly utility costs compared to renting
One-Time Buying Costs
Include closing costs for purchase and sale, plus any initial remodeling.
As a percentage of home purchase price (typically 2-5%)
As a percentage of eventual sale price (typically 6-10%)
Any renovation or repair costs in the first year
Growth Assumptions
Set expected growth rates for various financial factors.
Expected annual appreciation rate of the property
Expected annual increase in property taxes if different from the Home Price Growth rate (e.g. California is capped at 2% growth).
Expected annual increase in rental prices
General inflation for cost of living adjustments
Expected annual return on alternative investments
Tax Assumptions
Configure tax parameters for accurate calculations.
Your federal marginal income tax bracket. Refer to IRS' website for federal income tax rate and brackets.
Tax rate on investment gains or capital gains. Refer to IRS’ website and your State’s tax authority for capital gains tax rates.
Affects the standard deduction amount you'd receive for tax savings
Additional itemized deductions not related to the home such as medical expenses. Refer to your last year's tax return.
Your annual adjusted gross income (AGI) for calculating tax benefits of homeownership resulting from the State and Local Income Tax (SALT) deduction. Refer to your last year's tax return.
Annual state income tax amount for calculating tax benefits of homeownership resulting from the SALT deduction. Refer to your last year's tax return.
Summary
Rent - After 5 Years
Buy - After 5 Years
Recommendation
Renting is $82,440 cheaper than buying.
Total cost to buy: $217,646 vs rent: $135,206