Rent vs. Buy Calculator
A full lifetime comparison — mortgage, taxes, insurance, maintenance, PMI, appreciation, selling costs, and the opportunity cost of your down payment invested elsewhere.
- 30yr Fixed6.51%
- 15yr Fixed5.84%
- 5/1 ARM6.47%
- 2yr Fixed5.68%
- 5yr Fixed5.63%
- Tracker3.96%
- Variable6.20%
- 2yr Fixed5.90%
- 5yr Fixed5.54%
- Variable5.95%
Rates shown are national averages for reference only. Actual rates vary by lender, credit score, and LTV. US 30/15-yr figures auto-refresh daily from the Freddie Mac PMMS public dataset.
Inputs
How it works
Each month we simulate both paths:
- Buy: principal & interest, property tax, insurance, maintenance, HOA, and PMI (if LTV > 80%). Home value grows at your appreciation rate.
- Rent: rent + renter's insurance. Rent grows annually. Your down payment (plus any monthly savings vs buying) grow at your investment return.
At the end of the horizon we compute Buy net cost = total outflows − (home equity − selling costs), and Rent net cost = total outflows − investment portfolio gains. Whichever is smaller wins.
Frequently asked questions
How is opportunity cost included?
The renter's down payment and closing costs are invested at your assumed return. Any month where buying costs more than renting, the difference is also invested. That growing portfolio offsets the renter's outflows.
Why does the break-even year matter?
Transaction costs (closing + selling) mean buying almost always loses in the first few years. The break-even year is the earliest point at which selling would recover those costs.
Should I include the mortgage interest deduction?
Only if you itemize. With the higher standard deduction, most households don't — leave the toggle off for a conservative comparison.
What appreciation rate should I use?
Long-run US home appreciation is ~3–4%/yr nominal. Use lower for slow markets, higher only with strong local data.
What if I plan to move in 3 years?
Short horizons almost always favor renting. Selling costs (~6–8%) plus closing costs (~2–4%) must be recovered by appreciation and principal paydown.
Is maintenance really 1% of home value per year?
Averaged over decades, 1–2% is typical (roof, HVAC, plumbing, appliances). Newer homes trend low, older homes trend high.