Free Tool

Rent vs Buy Calculator

Should you rent or buy in 2026? Enter your numbers to see which comes out ahead financially with real equity, investment growth, and break-even analysis.

True cost comparisonEquity vs investment growthBreak-even year included
BUY

Buying a Home

$
3%50%
%

Tax: 1.60% · Insurance: 1.59%

VS
RENT

Renting Instead

$

Your current or expected monthly rent

Assumptions

1 yr30 yrs
%
%
%
%
After 10 years
Renting wins
by $134,008 in net worth
No break-even within 30 years at these rates
Buy — Net Worth
$260,685
Home equity after selling
Rent — Net Worth
$394,693
Portfolio from savings + investment
Monthly Cost to Buy
Principal & Interest$1,974
Property Tax$533
Insurance$530
Maintenance (1.0%/yr)$333
Total Monthly (Buy)$3,371
Renting Numbers
Monthly Rent (today)$2,000
Total Rent Over 10 yrs$275,133
Monthly savings vs buying$1,371
Down payment invested$157,372
Total Portfolio (Rent)$394,693
Home Equity After 10 Years
Home Value (3.5%/yr)$564,240
Remaining Mortgage−$269,700
Selling Costs (6%)−$33,854
Net Equity (Buy)$260,685
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How It Works

How We Compare Renting vs Buying

Most rent vs buy calculators only compare monthly payments — that's misleading. We model the full financial picture over your chosen time horizon.

For buying: we calculate total monthly costs (PI + tax + insurance + maintenance + PMI), project home appreciation, subtract remaining mortgage and selling costs to get true net equity.

For renting: we invest your down payment at your chosen return rate, plus invest any monthly savings vs buying. The result is your renting net worth at the end of the period.

The winner is whoever ends up with more net worth after your planned time horizon. The break-even year is when buying first overtakes renting in net worth.

Key Factors That Affect the Decision

How long you stay
Biggest factor. Buying almost always wins at 10+ years.
Home appreciation rate
Higher appreciation strongly favors buying.
Investment return rate
Higher returns favor renting (opportunity cost).
Rent increases
Faster rent growth favors buying (locked-in payment).
Down payment size
Larger down = less PMI, lower monthly, but more capital tied up.
Local market
High price-to-rent ratios (NYC, SF) tend to favor renting.

2026 Market Context

30-yr mortgage rate6.27%
Avg home appreciation (10yr)~3.5%/yr
Avg rent increase (10yr)~3.0%/yr
S&P 500 avg return (30yr)~10%/yr
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