Real Estate
Rent vs Buy Calculator
Compare the true 5-year cost of renting vs buying a home to make a smarter housing decision.
Buying Advantage ($)
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How It Works
Compares total rent paid against equity gained through appreciation. Positive = buying advantage; Negative = renting advantage. Real analysis should also include mortgage interest, taxes, and maintenance.
Example
$2,000/month rent vs. $350,000 home at 3% appreciation for 5 years: $120,000 rent vs. ~$57,000 equity gain.
Frequently Asked Questions
Is it always better to buy?
Not always. In expensive markets with short time horizons, renting may be smarter. Break-even is typically 3β5 years.
What is the 5-year rule?
Buying generally makes financial sense if you plan to stay at least 5 years, enough time to recoup closing costs.
What factors favor renting?
Job uncertainty, likely relocation within 3 years, high price-to-rent ratio in your market, or needing flexibility.