Is it cheaper to rent or buy a home?

It depends on local market conditions, how long you plan to stay, interest rates, and whether you invest the savings from renting. Generally, buying becomes favorable after 5-7 years due to equity buildup and appreciation.

What is the break-even point for buying vs renting?

The break-even point is when the net worth from buying (home equity minus costs) exceeds the net worth from renting (investment returns minus rent paid). For most markets, this is 5-10 years.

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Rent vs. Buy Calculator

Should you rent or buy? Compare the total cost of renting vs. buying a home over 30 years, including appreciation, opportunity cost, and investment returns.

Rental Information

Monthly Rent ($)

Annual Rent Increase (%)

If You Rented, Investment Return (%)

Returns if you invested the down payment and monthly savings

Purchase Information

Home Price ($)

Down Payment (%)

Interest Rate (%)

Property Tax (%)

Insurance ($/mo)

Maintenance (%)

% of home value per year

Home Appreciation (%)

Recommendation

EITHER WORKS

Monthly Rent

$2,500

Monthly Buy Cost

$3,595

Down Payment

$100,000

Break-Even

30+ years

Monthly Cost Breakdown (Buying)

Mortgage (P&I)$2,528

Property Tax$500

Insurance$150

Maintenance$417

Total$3,595

Year-by-Year Net Worth Comparison

Buying Renting + Investing

Year	Home Value	Buy Net Worth	Rent Net Worth
1	$515k	$85k	$98k
3	$546k	$57k	$99k
5	$580k	$31k	$105k
7	$615k	$6k	$120k
10	$672k	$-26k	$160k
15	$779k	$-68k	$290k
20	$903k	$-93k	$536k
25	$1047k	$-98k	$953k
30	$1214k	$-81k	$1623k