Rent vs Buy Calculator

No. The right answer depends on how long you'll stay, local rent vs price ratios, mortgage rates, appreciation, and your personal situation. Short stays generally favor renting due to transaction costs on buying and selling. Longer stays often favor buying as equity builds and mortgage interest tilts toward principal.

Time horizon, appreciation rate, and rent growth rate move the result the most. A 1 percentage point change in appreciation over 7 to 10 years can flip the answer either way. Maintenance and selling cost percentages also matter. The calculator surfaces every assumption so you can stress-test them.

No. The down payment could otherwise be invested for returns; that opportunity cost is real but hard to model honestly across markets. The calculator gives a straightforward out-of-pocket comparison so you can decide how to weight opportunity cost separately. Generally, higher expected investment returns make renting+investing look better.

Not modeled. Mortgage interest and property tax can be deductible if you itemize, but most filers take the standard deduction. Tax benefits also depend on jurisdiction (federal + state). For most middle-income filers, tax benefits are smaller than commonly assumed; for higher incomes in high-tax areas they can matter more.

Selling a home typically costs 5 to 7 percent of the sale price (agent commissions, closing costs, repairs, transfer taxes). On a $400k home that is $20k to $28k, paid from sale proceeds. If you sell soon after buying, this cost is a large share of any equity gained. Short horizons + selling costs = renting often wins.

Closing costs at purchase (2 to 5 percent of price) are real and usually paid in cash on top of the down payment. This calculator does not split them out, but you can add them to the down payment field to fold them in. Selling cost at the end of the horizon is modeled.