Should I rent or buy?
A rent-vs-buy calculator that includes opportunity cost on the down payment, maintenance, taxes, and the equity you build by paying down principal.
How this works
Most rent-vs-buy calculators compare the mortgage payment to the rent and call it done. That's wrong on two counts: it ignores the opportunity cost of the down payment (which could be invested if you rent), and it gives buying no credit for the equity you build paying down principal.
This calculator puts both paths on the same budget and compares what each is worth at the end:
- Buyer = home sale price − selling costs − mortgage balance still owed, plus anything they invested in months when rent would have cost more than owning
- Renter = the down payment + closing costs they didn't spend, invested from day one, plus the monthly difference invested whenever owning would have cost more than rent
Rent rises every year; a fixed-rate mortgage payment doesn't. That's why the answer shifts with time — and why we show the crossover year, the first year buying comes out ahead. The shorter the horizon, the more renting tends to win: closing costs going in and selling costs coming out are paid once, whether you stay 2 years or 20.
Not sure what price range to target? Run the house affordability calculator first. Already own and wondering about your rate? Try the refinance calculator.
Common questions
How long do I need to stay for buying to make sense?
Most rent-vs-buy break-evens land somewhere past 5 years. Below that, closing costs going in and a ~6% selling fee coming out eat the equity you'd build. This calculator finds the exact crossover year for your numbers — the first year buying comes out ahead — or tells you if it doesn't happen within 30 years.
Why does this calculator include opportunity cost on the down payment?
If you rent, that $90k down payment (plus the closing costs you didn't pay) stays invested and compounds. Most rent-vs-buy tools ignore this, which makes buying look cheaper than it really is. We compare both sides on the same budget: whoever has the cheaper monthly housing cost invests the difference.
Should I buy if the monthly payment is higher than rent?
Not necessarily a dealbreaker. Part of the mortgage payment is principal (building equity), not pure cost, and rent usually rises while a fixed-rate payment doesn't. The real comparison is total wealth after N years — which is what this calculator shows.