Enter your current monthly rent, the home price you're considering, down payment, mortgage rate, and other costs. The calculator compares the total cost of renting vs. buying over 30 years and identifies the break-even year — the point at which buying becomes cheaper than renting.

The side-by-side net worth comparison chart shows how your wealth accumulates under each scenario, accounting for home appreciation, rent increases, investment returns on savings, and all homeownership costs.

The decision to rent or buy is one of the most significant financial choices you'll make. While conventional wisdom says "buying is always better," the math is more nuanced and depends heavily on your local market, how long you plan to stay, and your investment alternatives.

The Break-Even Point

Buying a home involves large upfront costs — down payment, closing costs (typically 2-5% of the home price), and moving expenses. These costs need time to be recouped through home equity appreciation. In most markets, the break-even point is between 5 and 8 years. If you plan to move sooner, renting is often the better financial choice.

Hidden Costs of Homeownership

Beyond the mortgage payment, homeowners face property taxes, insurance, maintenance (budget 1-2% of home value annually), HOA fees, and potential special assessments. These costs typically add 30-50% on top of the base mortgage payment.

The Opportunity Cost of a Down Payment

A 20% down payment on a $400,000 home is $80,000. If invested in a diversified portfolio instead, that $80,000 could grow significantly over the same period. Our calculator accounts for this opportunity cost when comparing the two scenarios.