Rent vs. Buy Calculator

Time horizon decides it

The single biggest factor is how long you stay. Buying front-loads costs — closing costs going in, selling costs coming out — and those are painful to absorb over a short window. The longer you hold, the more rent inflation, principal paydown and appreciation compound in your favor. If you are confident you will be somewhere five to seven years or more, buying usually wins. If there is a real chance you relocate in two, renting deserves a serious look.

An honest comparison invests the difference

Most rent-versus-buy calculators quietly stack the deck by ignoring what a renter does with the money. This one assumes the renter invests the down payment and any monthly savings at a return you set, because that is the actual alternative. It also subtracts selling costs from your equity, since money you cannot access without paying commission and closing fees is not really in your pocket yet.

What it cannot price

Some of the value of owning does not fit in a spreadsheet: a fixed housing payment while rents climb, freedom to renovate, stability for kids in a school zone, and control over how long you stay. Some of the value of renting does not either — mobility, no maintenance, and no exposure if the market turns while you need to move. Use the number as one input, not the verdict.

Common questions

How many years until buying beats renting?

Commonly around five to seven years, though it swings with price, rent, rates and appreciation. The calculator shows your specific break-even year.

Does this account for maintenance?

Yes. It applies an annual maintenance allowance as a percentage of home value, which you can adjust.

What appreciation rate should I use?

Be conservative. Long-run national appreciation has often run in the low single digits. Modeling a lower number and still liking the answer is a good sign.

More calculators

• Mortgage Payment (PITI) — See your true monthly payment, not just principal and interest
• Rate Buydown & Points — Permanent points and 1-0, 1-1, 2-1, 3-2-1 temporary buydowns
• Affordability & DTI — What price you qualify for, and what you should actually spend
• Seller Net Sheet — What you actually walk away with after costs and payoff
• Refinance Break-Even — Monthly savings, break-even month, and lifetime interest
• Investment Property ROI — Cash flow, cap rate, DSCR and total return with leverage

Want these numbers run on a real address? Schedule your strategy call →

Educational estimate only — not a loan approval, appraisal, or tax advice. Michael Rush is a licensed REALTOR® with Keller Williams Realty DTC, not a lender, CPA, or attorney. Equal Housing Opportunity.