How long do I need to stay for buying to pay off?

It varies, but the break-even is often around 5–7 years. Below that, the upfront purchase costs and 6% selling costs usually outweigh the equity you build. Adjust the 'years you'll stay' field to find your break-even point.

Why does renting sometimes win even long-term?

If home appreciation is low, rent is cheap relative to the purchase price, or ownership costs are high, renting can stay cheaper. The calculator captures these trade-offs so you can test your local numbers.

Does this include the tax benefits of owning?

No. The mortgage interest deduction and other tax effects can favor buying for some households, but they depend heavily on your tax situation and whether you itemize. This is a pre-tax cash comparison.

Rent vs Buy Calculator

“Renting is throwing money away” is a myth — and so is “buying always wins.” The honest answer depends on how long you stay, what homes appreciate, and how rent rises. This calculator compares the total net cost of each path over your time horizon.

How this calculator works

We add up every dollar each option costs over the years you’ll stay, then subtract what you get back.

Cost of buying

Upfront: down payment + closing costs (assumed 3% of price).
Ongoing:mortgage principal & interest (30-year loan) + annual taxes, insurance, and maintenance (the % you set, applied to the home’s growing value).
Recovered at sale:the home’s appreciated value, minus the remaining mortgage balance, minus 6% selling costs — your equity at exit.

net cost of buying = upfront + payments + ownership − equity at sale

Cost of renting

The sum of rent over the period, growing each year by the rent-increase rate you provide. Renting builds no equity, but it avoids upfront and ownership costs.

What this simplifies

For clarity, the model fixes closing costs at 3%, selling costs at 6%, and the loan at 30 years. It does not model the mortgage interest tax deduction, PMI, the opportunity cost of investing your down payment instead, or transaction friction of moving. The longer you stay, the more buying tends to win — short stays usually favor renting because upfront and selling costs dominate.

Learn more

How Much House Can You Really Afford? — A plain-English walkthrough of the 28/36 rule, the costs lenders overlook, and how to set a home budget you can actually live with.

Frequently asked questions

How long do I need to stay for buying to pay off?: It varies, but the break-even is often around 5–7 years. Below that, the upfront purchase costs and 6% selling costs usually outweigh the equity you build. Adjust the 'years you'll stay' field to find your break-even point.
Why does renting sometimes win even long-term?: If home appreciation is low, rent is cheap relative to the purchase price, or ownership costs are high, renting can stay cheaper. The calculator captures these trade-offs so you can test your local numbers.
Does this include the tax benefits of owning?: No. The mortgage interest deduction and other tax effects can favor buying for some households, but they depend heavily on your tax situation and whether you itemize. This is a pre-tax cash comparison.