Rent vs. Own Calculator
Compare the true long-term cost of renting versus buying, accounting for equity built, appreciation, and rent increases.
Renting vs. Buying: The True Comparison
Buying isn't always better — it depends on how long you stay, appreciation rates, and your opportunity cost. Historically, homeowners build significantly more wealth over 10+ year periods, primarily through forced savings (equity) and appreciation.
The Hidden Costs of Owning
Home maintenance averages 1–2% of home value per year. Factor in HOA fees, property taxes, and insurance. This calculator includes taxes and insurance estimates but not maintenance — add 1% of home value annually for a conservative estimate.
The Break-Even Point
In most markets, buying becomes financially advantageous at the 4–7 year mark. If you plan to move sooner, renting is often the smarter financial choice — especially with today's elevated home prices and rates.
- Is it better to rent or buy in a high-cost market?
- In high-cost markets (NYC, SF, etc.), rent-to-price ratios are often unfavorable for buyers. The break-even point can extend to 10+ years. Use this calculator with local assumptions to find your personal break-even.