Is it cheaper to rent or buy a home?

It depends on your location, down payment, mortgage rate, and how long you plan to stay. In high-cost cities, renting is often cheaper for the first 5-7 years. In lower-cost areas, buying can be cheaper from year 2-3. Our calculator compares both scenarios with your specific numbers.

What is the break-even point for buying vs renting?

The break-even point is when the total cost of buying (including equity built) becomes less than renting. This typically ranges from 3-7 years depending on home prices, mortgage rates, and rent increases. Our calculator finds your exact break-even year.

How do roommates affect the rent vs buy decision?

Roommates dramatically reduce your effective rent cost. If you split $2,000 rent with a roommate, your $1,000 share may be much cheaper than a $1,800 mortgage payment. Our calculator factors in roommate savings for the renting scenario.

What costs are included in the buy calculation?

Monthly mortgage payment (principal + interest), property taxes, homeowner's insurance, maintenance costs (typically 1-2% of home value per year), and the opportunity cost of your down payment. We also factor in home appreciation as equity gain.

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Rent vs Buy Calculator

Should you keep renting or buy a home? This calculator compares total costs over 1-30 years, factoring in mortgage payments, property taxes, maintenance, home appreciation, rent increases, and equity building. Includes roommate savings in the rent scenario.

By Baljeet AulakhUpdated February 2026Reviewed for accuracy

Should you rent or buy a home? Compare the total cost of renting (with or without roommates) against buying over 1 to 30 years. This calculator factors in mortgage payments, property taxes, home appreciation, maintenance costs, and rent increases to find your exact break-even year and give a clear recommendation based on your specific financial situation and local market conditions.

Rent Details

Monthly Rent

Total rent for the unit (before splitting)

Number of Roommates

You pay the full rent

Buy Details

Home Price

Down Payment %

Mortgage Rate %

Loan Term

Property Tax Rate %

Home Insurance ($/year)

Maintenance % of Home Value

Industry standard: 1-2% per year

Comparison Settings

Annual Rent Increase %

National average: 3-5% per year

Home Appreciation %

Historical average: 3-4% per year

Years to Compare: 10

1 year15 years30 years

How This Calculator Works

Enter Your Details

Fill in amounts, people, and preferences. Takes under 30 seconds.

Get Fair Results

See an instant breakdown with data-driven calculations and Fairness Scores.

Share & Settle

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Frequently Asked Questions

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