Rent vs Buy Calculator

No. Rent buys housing, and the comparison ignores what the renter's saved cash earns. In expensive markets or short stays, investing the difference beats building home equity. The claim only holds for long stays in markets with strong appreciation.

Commonly 5–8 years. Our break-even calculation finds the first year buying's cumulative net cost drops below renting's — driven mainly by selling costs amortizing and equity compounding.

1% of home value per year is the standard planning figure; older homes or properties with pools/land may need 2%+. Omitting it overstates buying's advantage badly.

Not directly — this compares housing strategies, not incomes. Income growth matters for affordability, not for the rent-vs-buy cost comparison itself.

A conservative long-run diversified portfolio return of 4–6% is typical. Using 10%+ stacks the deck toward renting; using 0% stacks it toward buying.

No — the mortgage interest deduction now benefits a minority of filers after standard-deduction increases. If you itemize and benefit, the true cost of buying is somewhat lower than shown.

Because ownership costs more than principal and interest: taxes, insurance, HOA, and maintenance add 30–50% on top of P&I in most markets. Comparing rent to P&I alone is the most common analysis error.

Set down payment to 100%. The model then compares a fully-owned home (appreciation minus carrying costs) against a renter investing the entire purchase price — often a close call that hinges on appreciation versus investment returns.