Should you Rent or Buy a Home?
Trying to decide whether it’s better to rent a home or buy one? This website helps you compare both by adding up all the costs over time, not just the monthly payment. You enter a few details about your situation, and we show how renting and buying stack up so you can make a clearer decision.
See the true cost of renting vs buying over time
Include things like taxes, insurance, repairs, and fees
Accounts for current federal tax rules that affect owning a home (as of late 2025)
Make a decision based on your own numbers, not rules of thumb
Calculate Your Rent vs Buy Costs
Enter your values below to see a detailed comparison of renting versus buying. Adjust home price, mortgage details, and other parameters to find out which option is better for you.
Property Information
Enter the home price and how long you plan to stay in the property.
The purchase price of the home you're considering
How long do you expect to own this home?
Mortgage Details
Configure your down payment, loan term, and interest rate.
Percentage of home price you'll pay upfront
Number of years to repay the mortgage
Annual mortgage interest rate
Annual private mortgage insurance as percentage of loan amount
Rental Information
Enter rental market details for comparison.
Current monthly rent for an equivalent property
Upfront security deposit (typically one month's rent)
Annual cost of renter's liability insurance
One-time rental broker fee, if applicable
Annual Ownership Costs
Recurring expenses paid each year as a homeowner.
Annual property tax as a percentage of home value
Annual homeowners insurance as a percentage of home value
If applicable, monthly homeowners association fees
Annual maintenance costs as a percentage of home value (typically 1-2%)
Monthly utility costs compared to renting
One-Time Buying Costs
Include closing costs for purchase and sale, plus any initial remodeling.
As a percentage of home purchase price (typically 2-5%)
As a percentage of eventual sale price (typically 6-10%)
Any renovation or repair costs in the first year
Growth Assumptions
Set expected growth rates for various financial factors.
Expected annual appreciation rate of the property
Expected annual increase in property taxes if different from the Home Price Growth rate (e.g. California is capped at 2% growth).
Expected annual increase in rental prices
General inflation for cost of living adjustments
Expected annual return on alternative investments
How likely are you to invest the savings between renting and buying costs?
How stable is your situation?
Tax Assumptions
Configure tax parameters for accurate calculations.
Your federal marginal income tax bracket. Refer to IRS' website for federal income tax rate and brackets.
Tax rate on investment gains or capital gains. Refer to IRS' website and your State's tax authority for capital gains tax rates.
Affects the standard deduction amount you'd receive for tax savings
Additional itemized deductions not related to the home such as medical expenses. Refer to your last year's tax return.
Your annual adjusted gross income (AGI) for calculating tax benefits of homeownership resulting from the State and Local Income Tax (SALT) deduction. Refer to your last year's tax return.
Annual state income tax amount for calculating tax benefits of homeownership resulting from the SALT deduction. Refer to your last year's tax return.
How this Calculator Works (short version)
Compares the true cost of renting vs buying. It adds up all money from move-in to move-out and not just monthly rent or mortgage payments.
- Includes upfront costs: One-time costs like down payments, closing costs, security deposits, and broker fees are counted up front.
- Tracks ongoing costs over time: Monthly and yearly costs such as rent, mortgage payments, property taxes, insurance, maintenance, and repairs are included so ongoing costs aren't overlooked.
- Accounts for missed investment gains (opportunity cost): Money spent on housing can't be invested elsewhere; the calculator estimates the investment growth you give up for both renting and buying.
- Estimates tax effects: It factors in mortgage interest, property taxes, investment taxes, filing status, and SALT limits so after-tax costs are more realistic.
- Includes money you get back at the end (net proceeds): Home sale proceeds or a returned security deposit are subtracted from total cost.
- Shows one clear bottom line — Total Cost: Answers “How much did it really cost to live here for this many years?” The option with the lower Total Cost is financially cheaper.
This calculator focuses on the financial side only
It helps you compare costs, not lifestyle preferences. Things like stress, stability, flexibility, and personal happiness still matter and should be considered alongside the numbers.
See the Guide for deeper explanations and decision guidance
The Guide page explains common questions about how the calculator works, how to interpret results, and how to weigh financial results together with quality-of-life considerations.
Summary
Rent - After 3 Years
Buy - After 3 Years
Recommendation
Renting is $2,942 cheaper than buying.
Total cost to buy: $57,121 vs rent: $54,178