Decide whether renting or buying a home costs less over the time you plan to stay. Enter your rent, the home price, your down payment, and the mortgage rate to compare total costs and find your break-even point.
✓ Updated July 2026Formula-basedNo signupNothing stored
The calculator builds two running totals over the years you plan to stay. The renting total adds every month of rent, raising it each year by your rent-increase rate. The buying total starts with the down payment and closing costs, then adds the monthly mortgage payment plus the monthly share of property tax, insurance, and maintenance — and subtracts the loan principal you pay off, since that equity is yours. Whichever total is lower wins, and the break-even point is the first year buying becomes cheaper than renting. The biggest driver is how long you stay: short stays favor renting, long stays favor buying.
It depends on how long you stay, your local prices and rents, the mortgage rate, and how fast rent rises. Renting is cheaper in the short term; buying usually wins over a long horizon because rent keeps climbing while a fixed mortgage does not.
It is the number of years you need to own before the total cost of buying drops below the total cost of renting. A common rule of thumb is around five years, but your own numbers may differ.
Yes. The buying side includes the mortgage, property tax, insurance, maintenance, and closing costs, minus the equity you build. It does not model HOA dues, the mortgage-interest tax deduction, or the return on an invested down payment.
No. This version compares cash cost and counts the loan principal you repay as equity. It does not add home appreciation or investment returns on a down payment, which can shift the result either way.
The math is exact for the inputs you provide, but real outcomes depend on your market, lender fees, and how long you actually stay. Use it as a planning estimate, not a guarantee.
Disclaimer: This tool provides an estimate for general informational purposes only and is not financial advice. It ignores closing-cost detail, HOA dues, tax deductions, and investment returns on a down payment. Loan terms, rates, taxes, and local markets vary. Consult a licensed mortgage professional before making decisions.
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