Rent vs buy calculator
Should you rent or buy? We find the break-even year — when buying builds more wealth than renting and investing the difference — using real closing and selling costs, appreciation, rent growth and investment returns. No email, no lender.
Mortgage rate prefilled with today’s ~30-yr average (6.662%) from our live board — edit freely.
Should I rent or buy? It comes down to time.
Buying a home is loaded with one-time friction costs — closing costs on the way in, and agent plus closing costs on the way out — that can total 8% or more of the price round-trip. It takes years of loan paydown and appreciation to earn those back. The honest way to compare is not payment-vs-rent, but net worth vs net worth: after however many years you stay, would you be wealthier having bought, or having rented and invested the money you didn’t sink into a down payment?
Why we invest the difference
A renter keeps the down payment and closing costs — that money can sit in the market earning a return — and invests any month where renting costs less than owning. We track both a homeowner’s equity (home value minus selling costs and remaining loan) and both sides’ side investments, grow everything at your assumed return, and report the break-even year where the buyer’s net worth overtakes the renter’s. Stay longer than that and buying wins; move sooner and renting would have left you richer. When you’re ready, check today’s real rates and size the payment with our mortgage calculator.