Own vs Rent Calculator
Beyond the monthly payment. See the true, long-term cost of renting and buying to find out which path makes the most financial sense for you.
How to Use This Calculator
Getting your personalized breakdown is simple. Just follow these steps:
Fill in the "Buying" Side
Input the home price, your down payment, the loan term, and your estimated interest rate. Don't worry if you don't have exact numbers; estimates work great to start.
Fill in the "Renting" Side
Enter the monthly rent for a comparable property and your estimated renter's insurance.
Adjust Advanced Options (Optional)
Click "Advanced" to fine-tune details like property tax rates, home appreciation, and investment return rates for a more customized analysis.
See Your Results!
Instantly compare the total costs over time and discover your "breakeven point"—the moment buying becomes cheaper than renting.
Our Methodology & Sources
We believe in 100% transparency. This calculator is more than just a simple multiplication of monthly payments. It's a comprehensive financial model designed to give you a complete picture.
What We Calculate:
Down payment, closing costs (for buyers).
Mortgage payments, property taxes, insurance, PMI, and maintenance costs vs. rent and renter's insurance.
Opportunity cost of down payment and potential home value appreciation over time.
Trusted Methodology
Our calculation logic is adapted from proven financial models, including the frameworks used by The New York Times and other reputable financial institutions. We continuously update our model to reflect current market conditions.
Key Terms Explained
Navigating real estate jargon can be tough. Here are a few key terms from our calculator, explained in plain English.
Opportunity Cost
This is the potential return you miss out on by using your money for one thing instead of another. For example, the money you use for a down payment could have been invested in the stock market instead. Our calculator helps you visualize this cost.
Closing Costs
A bundle of fees paid at the end of a real estate transaction. They typically include appraisal fees, loan origination fees, title insurance, and more. They usually amount to 2-5% of the home's purchase price.
Private Mortgage Insurance (PMI)
If your down payment is less than 20% of the home's price, lenders usually require you to pay PMI. It's a type of insurance that protects the lender—not you—in case you can't make your payments.
Breakeven Point
The point in time (e.g., 4.5 years) when the total cost of owning your home becomes equal to the total cost of renting. After this point, owning becomes the cheaper option.
Related Tools
Once you have an idea of your path, use our other tools to get even more clarity.
Frequently Asked Questions (FAQ)
Once you have an idea of your path, use our other tools to get even more clarity.
How accurate is this calculator?
Our calculator provides a highly reliable estimate based on the data you provide and standard financial models. However, it should be used as an informational tool, not as financial advice. Market conditions can change, and we always recommend consulting with a qualified financial advisor.
Is buying always the better financial choice in the long run?
Not necessarily. The "better" choice depends heavily on factors like how long you plan to stay in the home, local market appreciation, interest rates, and your personal financial goals. Our calculator is designed to help you find the answer that's right for your specific situation.
What if I don't know the exact property tax or insurance rates?
No problem! The calculator comes pre-filled with national average rates to give you a great starting point. You can easily adjust them to better match your local market or as you get more precise information.