Free Calculator

Rent vs. Buy Calculator

Find your true breakeven point. Enter your numbers and see exactly when buying beats renting, accounting for opportunity cost, equity, taxes, and inflation.

When buying tends to make sense

You have a long runway and stable roots

Buying typically pays off when you plan to stay in one place for at least 5 to 7 years. That gives you enough time to build equity, offset closing costs, and benefit from home appreciation. It also tends to work well when your monthly mortgage payment (with taxes and insurance) is close to what you would pay in rent for a comparable home.

When renting is the smarter move

Your life is still taking shape

Renting wins when flexibility matters more than equity. If your career might pull you to a new city, or you are not sure you want to stay in your current area for years, renting keeps your options open. It also preserves your down payment cash to invest in the market, which has historically returned 6% to 8% annually. The math on renting is better than most people assume.

🏠

Rent vs. Buy Calculator

Find your true breakeven point: when buying actually beats renting.

Rent vs. buy is one of the most emotionally charged financial decisions young adults face. This calculator goes beyond the mortgage payment to account for opportunity costs, equity building, taxes, and inflation, giving you a real apples-to-apples comparison over time.

🏘️ Renting
$
Show Options▼
🏡 Buying
$
$
%
%
Show Options▼
📋 Additional Info
%
Show Options▼
📅 How long do you plan to stay?
years
Calculating...
Rent Buy You are here Break even
Total costs after 3 years ▼

For educational purposes only. Results are estimates based on the inputs you provide. Consult a financial professional before making major housing decisions.

How this calculator works

This tool compares the true total cost of renting versus buying over any time horizon you choose, adjusting all figures for inflation so the comparison is apples-to-apples. On the buying side it includes your down payment, closing costs, monthly principal and interest, property taxes, homeowner's insurance, HOA fees, PMI (if applicable), maintenance, and eventual selling costs. It also estimates any mortgage interest deduction when itemizing makes sense over the standard deduction.

On the renting side, it factors in your total rent payments over time, renter's insurance, and any broker fee. Crucially, it also credits renters for the investment growth they would earn by keeping their down payment in the market rather than locking it into a home. That opportunity cost is one of the most overlooked parts of the rent vs. buy decision.

What the calculator does not model: local rent control ordinances, the psychological value of owning your space, the impact of refinancing, or unexpected major repairs beyond the maintenance percentage. These are real factors worth thinking through alongside the numbers.

Frequently asked questions

Is it better to rent or buy a house in your 20s? ▼
It depends far more on your timeline and local market than your age. If you plan to stay put for at least 5 to 7 years, buying often wins mathematically once you factor in equity and appreciation. If your life is still in flux, renting keeps your options open and your upfront capital invested. The right answer is the one that fits your actual situation, not a rule tied to your birth year.
What is the 5% rule for renting vs. buying? ▼
The 5% rule is a quick mental shortcut: multiply the home price by 5%, divide by 12, and compare that monthly number to your rent. If your rent is lower, renting may be the smarter financial move. The 5% accounts for property tax (roughly 1%), maintenance (roughly 1%), and the opportunity cost of your down payment (roughly 3%). It is a starting point, not a final answer, and this calculator gives you the full picture.
How long should I plan to stay in a house to make buying worth it? ▼
Most calculators, including this one, show that buying starts to make financial sense somewhere between 4 and 8 years depending on your market and mortgage rate. The biggest early costs of buying, closing costs and selling costs when you eventually leave, take several years of equity growth to offset. If there is a real chance you will move within 3 years, the math usually favors renting.
Does this calculator include property taxes and maintenance? ▼
Yes. The calculator includes property taxes, homeowner's insurance, maintenance (default 1.5% of home value per year), PMI if your down payment is below 20%, HOA fees, closing costs, and selling costs when you eventually exit. You can adjust all of these in the options section to match your specific situation.
What's the true cost of homeownership beyond the mortgage? ▼
The mortgage is just the starting point. Homeowners also carry property taxes, homeowner's insurance, maintenance and repairs (budget at least 1% to 2% of the home's value per year), HOA dues in many communities, and PMI if the down payment is under 20%. When you sell, expect another 5% to 6% in agent commissions and fees. This calculator folds all of those into the comparison so you are looking at the full picture, not just the monthly payment.

Related episodes

Want to go deeper? Skyler covers rent vs. buy in these episodes:

▶️
🎙️

Want a full financial plan?

Check out the Young Adult's Guide to Financial Planning, with interactive tools for budgeting, investing, retirement, and more.

Open the Guide →