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Rent vs Buy Calculator (2026)
Compare the true 5, 10, and 30-year total cost of renting versus buying — including mortgage interest, equity buildup, appreciation, maintenance, and opportunity cost of your down payment.
🆚 Rent vs Buy Calculator
🏠 Buying Inputs
~1% of home value/yr
US avg ~3–4%
🏢 Renting Inputs
If down payment was invested instead
Monthly rent savings vs buying invested
Upfront cost of buying
Rent vs Buy — Key Factors
The rent vs buy decision depends on how long you plan to stay, local home prices relative to rents, current mortgage rates, and what you could earn investing your down payment instead. At 7%+ mortgage rates, buying is more expensive month-to-month than renting in most US markets — but equity and appreciation favor buyers who hold for 5+ years.
The break-even point is when total cost of buying equals total cost of renting. Use the year tabs above to find when buying becomes the better financial choice in your situation.
Frequently Asked Questions
Is it better to rent or buy in 2026?
At 2026 rates (~7%), monthly buying costs exceed renting in most markets. However, equity buildup and appreciation favor buyers who stay 5+ years. If you plan to move within 3 years, renting is almost always cheaper after accounting for closing and selling costs.
How long do you need to stay to make buying worth it?
Typically 5–7 years in most US markets. High-cost coastal cities (NYC, SF) can take 10+ years. Affordable Midwest markets (Indianapolis, Columbus) can break even in 3–4 years. Use the year tabs above to find your specific break-even point.
What is opportunity cost in this calculator?
Opportunity cost is the investment return you forgo by putting money into a down payment instead of investing it. This calculator assumes your down payment — and any monthly savings from renting — could earn a market return (default 7%/yr). This "lost" return is a real cost of buying.
Does renting build any wealth?
Renting itself builds no equity. However, if you invest the difference between renting and buying (down payment + monthly savings), you can build significant wealth. The rent vs buy decision is not simply about housing costs — it is about total financial outcome.