Rent vs Buy Calculator

Few financial choices carry as much weight as renting versus owning, and the honest way to compare them is over a long horizon, typically anywhere from 5 to 30 years. With 2026 average mortgage rates expected to sit around 6.5% and national rents projected to climb roughly 4%, the gap between the two paths can be substantial. The point of the comparison is to find your break-even year, the moment when the cumulative cost of buying finally drops below the cumulative cost of renting.

Both sides are built up from their full monthly costs across the timeframe you choose. The renting side gathers monthly rent, renter's insurance, and the expected annual rent increases. The buying side accounts for mortgage principal and interest, property taxes estimated at 1.1% of home value annually, homeowner's insurance, any HOA fees, maintenance estimated at 1% of home value annually, and upfront closing costs averaging 2-5% of the loan amount. Offsetting those expenses are projected home appreciation of 3.5% annually for 2026 and the tax benefits tied to mortgage interest and property tax deductions.

Your inputs do most of the heavy lifting, so it helps to be conservative about rent growth and appreciation, where small assumptions compound into large swings. Money is only part of the picture too: renting offers flexibility, while ownership offers stability and control. The trap to watch for is leaning too hard on optimistic appreciation or thin maintenance numbers, which can make buying look better on paper than it proves to be in practice.