Is it better to rent or buy a home?

It depends on several factors: how long you plan to stay, interest rates, home appreciation, and alternative investment returns. Generally, buying becomes better over longer time horizons (7+ years), while renting may be more cost-effective short-term.

What is the rent vs buy break-even point?

The break-even point is the year when the total accumulated cost of buying becomes less than the total cost of renting. Before that point, renting is typically cheaper; after it, buying tends to win.

How do I calculate the true cost of buying a home?

The true cost includes: down payment, mortgage payments, property taxes, maintenance, insurance, and closing costs, minus the home appreciation and equity you build over time.

What is the opportunity cost of the down payment?

It's the investment return you'd earn if you invested your down payment in stocks or funds instead of using it to buy a home. If investments outperform home appreciation, renting may be more financially efficient.

Calcufast

Rent vs Buy Calculator

Compare the real cost of renting versus buying a home. Factors in mortgage, appreciation, maintenance costs, and opportunity cost of your down payment.

Property details

Property price

Down payment (%)

Mortgage interest rate (%)

Mortgage term (years)

Closing costs (%)

Ownership costs

Annual appreciation (%)

Annual property tax (%)

Annual maintenance (%)

Annual insurance (%)

Renting details

Monthly rent

Annual rent increase (%)

Analysis parameters

Alternative investment return (%)

Analysis period (years)

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