Free USA rent vs buy calculator
should you rent or buy?
Get a clear, money-based answer. Enter your home price, rent and how long you'll stay to see which is cheaper — plus your breakeven year, the home equity you'd build, and what your down payment could earn invested instead.
When buying starts to win —
Estimates for planning only. Results depend heavily on your appreciation, rent-growth and investment-return assumptions, which no one can predict.
Rent vs Buy Calculator (2026): should you rent or buy?
This free rent vs buy calculator gives you a clear, money-based answer to the biggest housing question of 2026: is it cheaper to rent or to buy? In seconds, the rent vs buy calculator shows the cheaper option for your timeline, your breakeven year, and how much home equity you would build versus investing your down payment instead.
Use the free tool at the top of this page, then read the guide below to understand the breakeven point, the 5-year rule, and the hidden costs that decide whether renting or buying wins for you.
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How to use this rent vs buy calculator
This free rent vs buy calculator answers the question every renter eventually asks: should I rent or buy? Instead of a gut feeling, the rent vs buy calculator runs the real math — mortgage, taxes, maintenance, appreciation, and the money you could earn by investing your down payment instead — to show which option leaves you richer.
Pro tip: Leaning toward buying? Check your upfront cash with our down payment calculator and see what you can afford with our mortgage affordability calculator.
Why use this rent vs buy calculator?
Most tools only compare rent to a mortgage payment, which is misleading. This rent vs buy calculator counts the costs buyers forget — property tax, insurance, maintenance, closing and selling fees — and credits renters for investing the down payment they never spent. That's why this rent vs buy calculator can flip the answer that a simple payment comparison gets wrong.
How the rent vs buy breakeven works
The key output is your breakeven year — the point where buying finally becomes cheaper than renting. Before breakeven, the upfront costs of buying (down payment, closing costs) outweigh the equity you've built. After it, your growing equity and flat mortgage payment pull ahead of rising rent.
This calculator compares two net-worth paths over time. The buyer builds home equity (value minus selling costs and remaining loan) — estimate those upfront numbers with our closing cost calculator. The renter invests the down payment and any monthly savings at your chosen return. Whichever ends higher wins for that timeframe.
In the 2026 market with rates around 6.5%, buying typically breaks even after about 5 to 7 years. Move sooner and renting usually wins; stay longer and buying pulls ahead. The rent vs buy calculator above pinpoints that crossover year for your exact numbers.
The 5-year rule for renting vs buying
A well-known guideline says you should plan to stay in a home at least five years before buying makes financial sense. That's because closing costs (2% to 5%) and selling costs (6% to 8%) can wipe out several years of equity gains. If your job, family, or lifestyle might move you within five years, renting is usually the safer money choice, and this rent vs buy calculator will confirm it.
Rent vs buy: pros and cons
| Renting | Buying | |
|---|---|---|
| Upfront cost | Deposit only | Down payment + 2–5% closing |
| Monthly cost | Rent (rises over time) | Mortgage (fixed) + taxes, insurance, upkeep |
| Flexibility | High — move easily | Low — 6–8% to sell |
| Builds wealth? | Only if you invest savings | Equity + appreciation |
| Maintenance | Landlord's job | Yours (~1%/yr of value) |
| Best for | Short stays, mobility | Long stays, stability |
Is renting throwing money away?
This is the biggest myth in the rent vs buy debate. The Consumer Financial Protection Bureau encourages buyers to weigh total ownership costs, not just the payment. Renting is not wasted money — renters skip property taxes, maintenance, and the 6% to 8% cost of selling, and they can invest the down payment they never spent. A renter who invests a $80,000 down payment at a 7% return builds real wealth that often rivals home equity in flat markets. Buying builds wealth through forced savings and appreciation; renting can build it through disciplined investing. The winner depends on your timeline, your market, and whether you actually invest the difference — exactly what this rent vs buy calculator models for you.
Costs buyers forget in a rent vs buy comparison
A fair rent vs buy comparison counts the true cost of ownership, not just the mortgage. These add roughly 30% to 40% on top of your loan payment.
| Hidden buying cost | Typical amount |
|---|---|
| Property taxes | ~1.1% of home value / year |
| Homeowners insurance | ~0.5% of home value / year |
| Maintenance & repairs | ~1% of home value / year |
| Closing costs (to buy) | 2% – 5% of price |
| Selling costs (to exit) | 6% – 8% of sale price |
| HOA dues (if any) | Varies by property |
The calculator above already includes taxes, insurance, maintenance, and closing/selling costs, so your comparison reflects the real cost of owning — not just the mortgage.
Sources & references
The assumptions in this rent vs buy calculator guide are based on public USA housing and lending data. For official, current details, review these authoritative resources:
- Consumer Financial Protection Bureau — Owning a Home — official guidance on the true costs of buying vs renting.
- Freddie Mac — Primary Mortgage Market Survey — current national average mortgage rates.
- U.S. Census Bureau — Housing Vacancies & Homeownership — national rent and homeownership data.
- U.S. Department of Housing and Urban Development (HUD) — renter resources and housing assistance programs.
Rates, rents and home prices change constantly, and future appreciation and investment returns cannot be predicted — treat all results as estimates.