Rent vs Buy

Updated: Jan 30, 2026

Use the calculator to compare renting vs buying over realistic time horizons, then go deeper with guides on break-even, opportunity cost, inflation, property taxes, maintenance, and high price-to-rent markets.

Open calculator → All calculators

Tip: Start with the calculator, then read 1–2 guides that match your situation (time horizon, taxes/HOA, maintenance risk, inflation, or opportunity cost).

How to use the Rent vs Buy hub

This hub compares renting vs buying using one consistent framework: total cost, equity/invested savings, and net position over a realistic holding period. Start with the calculator to estimate monthly and long-term costs, then use the guides to understand what moves break-even—closing and selling costs, property taxes, insurance, maintenance, rent growth, home appreciation, inflation, and opportunity cost (what your down payment could earn if invested).

If you’re unsure where to start, read 10 vs 30 years first—short holds magnify transaction friction, while long holds magnify growth assumptions. Then open the rent vs buy calculator and stress-test three scenarios (conservative, base, optimistic).

Start here

10 vs 30 years: total cost, equity, and break-even Why your holding period changes everything—and why 10-year results can flip. Break-even: when buying catches up How to interpret break-even and what variables move it the most. Opportunity cost: investing vs equity The hidden lever: what your down payment and monthly difference could earn if invested. Common mistakes that ruin comparisons Selling friction, principal vs interest, missing opportunity cost, and unrealistic costs.

All Rent vs Buy guides

3–5 years: short-hold reality check Short holds magnify closing/selling costs and reduce the time to build equity. 10 vs 30 years Short holds magnify friction; long holds magnify growth assumptions. Assumptions: what moves the outcome most Rent growth, appreciation, taxes, maintenance, and investment returns—test realistic ranges. Property taxes: how they change the decision Taxes don’t build equity and can push break-even out—especially over 3–10 years. HOA fees: when monthly fees change the winner Recurring fees behave like “extra rent” for owners and can shift break-even. Maintenance costs: repairs + CapEx budgeting Why “one big repair” can dominate short holds—and how to stress-test scenarios. Inflation: fixed mortgages vs rising rents How inflation changes real costs, taxes/insurance, and opportunity cost. High interest rates: why 10-year results flip Early payments are interest-heavy; higher rates push break-even later. Opportunity cost Investing the down payment and monthly difference can change the result. High price-to-rent markets When buying is expensive relative to rent, renting is often competitive. Break-even (deep dive) What break-even really means and what moves it most. Common mistakes Missing selling costs, counting principal as cost, underestimating taxes/maintenance.

Related calculators

Mortgage Calculator Estimate payment, amortization, and total interest to support your buy scenario. Taxes & Fees Model property tax, HOA/fees, closing costs, and selling friction. Property Sale Calculator See proceeds after selling costs and inflation-adjusted outcomes. Total Cost of Ownership Taxes, maintenance, interest, and operating costs—everything ownership adds. Alternative Investments Compare investing cash vs locking it into home equity.

Rent vs Buy FAQ

Is renting “throwing money away”?

No. Rent is the cost of housing services. Buying has costs too (interest, taxes, insurance, maintenance, and transaction fees). The right comparison is net position: equity vs invested savings.

What usually determines the break-even point?

Closing + selling costs, mortgage rate, rent growth, appreciation, taxes/HOA, maintenance, and opportunity cost. Short holds are most sensitive to transaction friction and underestimating ownership costs.

How long do you need to stay for buying to make sense?

It depends on your costs and assumptions. Use the calculator and test 5, 7, 10, and 15-year horizons to see where the net outcome flips.

Should I compare total paid or net worth impact?

Net worth impact (net position) is better: owner equity minus ownership costs vs renter investments minus rent. “Total paid” alone can be misleading.

Ready to run numbers?

Run a base + conservative scenario — you’ll instantly see what moves break-even most.

Open calculator → Read 10 vs 30 years