What this calculator shows you
- Total Cost Comparison
- See true costs of both options over time
- Breakeven Analysis
- Find when buying becomes cheaper
- Opportunity Cost
- Factor in investment alternatives
- Hidden Costs
- Include maintenance, taxes, and fees
The True Cost of Buying
Buying includes: mortgage payments, property taxes, insurance, maintenance (1-2% of home value/year), HOA fees, and opportunity cost of down payment. Many buyers underestimate these costs.
The True Cost of Renting
Renting includes: monthly rent, renters insurance, and the opportunity cost of not building equity. However, you can invest the money you would have spent on a down payment and maintenance.
The Breakeven Point
The breakeven point is when buying becomes cheaper than renting. This typically takes 3-7 years depending on your market. If you might move sooner, renting often makes more sense.
Questions people ask
How long should I plan to stay to make buying worth it?
Generally 5-7 years minimum due to closing costs and transaction fees. In expensive markets with high price-to-rent ratios, it may be even longer.
Does building equity make buying always better?
Not necessarily. If you invest the difference between renting and buying costs, you may build more wealth renting in some markets.
Education only, not personalized financial, tax or investment advice. Results are estimates based on the numbers you enter; real returns vary and losses happen.