The rent vs buy question depends on more than the mortgage payment — it includes opportunity cost of the down payment, property tax, maintenance, and how long you stay. This calculator models the full financial picture over your chosen time horizon.
How it works
- Enter the target home price and your down payment details.
- Specify expected years in the home and your current alternative monthly rent.
- Include expected appreciation and tax rates to reveal the exact financial winner over time.
Frequently asked questions
What appreciation rate should I use?
US homes have averaged roughly 3–4% annual appreciation over long periods, though this varies enormously by location. Use local data if you have it.
Why does time horizon matter so much?
Buying has high upfront costs (down payment, closing costs). Over a short period those aren't recovered; over 7+ years ownership usually wins financially.
Does this include tax deductions?
No — mortgage interest deduction eligibility varies by taxpayer situation. For a tax-adjusted comparison, consult a financial advisor.
What is the 5% rule for renting vs buying?
A rough guideline: multiply the home price by 5%, then divide by 12. If your monthly rent is below that number, renting may make financial sense. This calculator gives a more precise comparison using your actual inputs.