Rent vs Buy Calculator
Should you rent or buy in 2026?
Every rent-vs-buy calculator online produces a generic answer. This one uses honest math — your actual rent, real home price, mortgage rate from today's market, appreciation, tax deductions, and the opportunity cost of investing your down payment. Get the break-even year for your specific situation.
- Compares total wealth over 5-30 years, not just monthly payment
- Factors in your down payment’s investment opportunity cost
- Includes mortgage interest & property tax deductions
- Shows the exact year buying breaks even vs renting
Your Rent vs Buy Scenario
Adjust the numbers — results update live
Renting
Buying
Tax & timeline
Break-even year
Year 4
The year buying overtakes renting on total wealth
Buying wins by $83,400 over 10 years.
Year 1 monthly cost — renting$2,400
Year 1 monthly cost — buying$3,100
Renter wealth in 10 yrs$140,000
Buyer wealth in 10 yrs$223,000
Total wealth over time
Where the two lines cross — that’s your break-even year.
Buyer wealth
Renter wealth
Break-even
Live mathUpdated as you type
Honest inputsReal appreciation, real tax
State defaults9 states pre-configured
No email requiredSee results instantly
How the math actually works
Most rent-vs-buy calculators give you a vague answer. This one shows you exactly how each dollar accumulates — on both sides.
1
Renter side
Your down payment stays invested at your assumed return rate. Each month you pay rent (rising each year with inflation). If your rent is less than the buyer’s all-in monthly cost, the difference gets invested too — and compounds.
2
Buyer side
Home equity grows two ways: mortgage principal paydown (forced savings) plus appreciation. Add tax savings from mortgage interest + property tax deductions (if itemizing). Subtract annual maintenance and closing costs.
3
Break-even year
Both sides compound over your chosen timeline. The break-even year is when buyer wealth first exceeds renter wealth. In most markets that’s 3-5 years — but in high-price / low-appreciation markets it can be 7-10+.
Typical break-even ranges across our licensed states
Break-even year varies dramatically by market. Coastal high-price + low property-tax states (CA) take longer to clear the down-payment opportunity cost. Sun Belt low-price + moderate-tax states (SC, ID, CO) break even faster. High property-tax states (NH, TX) run longer because monthly carrying cost eats into buyer wealth accumulation.
Colorado Springs, CO
Year 3
Low property tax + strong appreciation
Charleston, SC
Year 3
Low tax, Sun Belt in-migration
Boise, ID
Year 4
Rapid appreciation, California in-flow
Denver, CO
Year 4
Balanced tax + appreciation
NoVA (Fairfax), VA
Year 5
High price offset by federal contractor rents
Tampa / Orlando, FL
Year 5
Insurance drag but strong appreciation
Austin, TX
Year 6
High property tax (1.74%) drags math
San Diego, CA
Year 7
High price + high down-payment opp cost
Rent vs Buy FAQs
Why does this calculator show a different answer than others online?
Most online calculators only compare monthly payments. That misses the whole picture. This calculator compares total wealth accumulated over your chosen timeline — including your down payment’s investment opportunity cost (the return you’d get if you invested it instead of putting it down), tax deductions if you itemize, maintenance costs on the buy side, and rent inflation on the rent side. That’s the honest math.
What if I take the standard deduction instead of itemizing?
Toggle "No — standard" on the calculator. Buyer wealth drops because the mortgage interest deduction (MID) isn’t producing tax savings. For many buyers under the 2017 doubled standard deduction, itemization only wins with substantial mortgage interest + property tax + charitable giving. Check with your CPA — but toggle the calculator to see how it affects your break-even.
What appreciation rate should I use?
Long-run U.S. average is roughly 4% annually (nominal). Supply-constrained markets like Bay Area, Boise, Charleston, Denver Front Range often run 5-7%. Slower markets like rural Midwest or Rust Belt might do 2-3%. Use 4% as your base case — then adjust up or down based on your specific market’s history.
Why does the calculator ask about investment return?
If you don’t buy, your down payment doesn’t sit under a mattress — it stays in your brokerage account, 401(k), or savings, earning a return. That return is your opportunity cost of buying. Long-run S&P 500 has averaged ~10% but most planners use 6-7% for planning. Higher return = harder for buying to break even. This is why we insist on including it.
Does the calculator account for closing costs?
Yes. Closing costs (default 3%) are treated as an upfront hit to buyer wealth — the buyer effectively loses that money at year 0. It has to be recouped through equity + appreciation + tax savings before buying breaks even. This is one reason short holds (under 3 years) rarely favor buying.
What if I have a longer hold horizon than 30 years?
The math extends. Every year past break-even, buying wins by more. At year 15-20, buyers are typically $200K-$500K wealthier than equivalent renters. At year 30 (loan paid off), buyers have near-free housing while renters are paying $5,000+/month in inflated rent.
What if I’m not sure how long I’ll stay?
Use the 5-year timeline first. If buying wins at 5 years, buying wins at longer horizons too — and you get flexibility to stay longer. If renting wins at 5 years, the buy math needs a 7-10+ year commitment. If your time horizon is genuinely uncertain and under 3 years, renting almost always wins because closing costs don’t amortize.
Ready to run the numbers on your specific situation?
The calculator is a great starting point. But your real rent, real target home, real credit profile, and real tax bracket produce a more precise answer — and we can also model the loan program (VA / FHA / HomeReady / conventional) that fits you best. 30-minute consultation, no email required.
Call (877) 870-0007 Try the Affordability Calculator