Compare the true cost of buying vs renting — including mortgage payments, rent increases, taxes, insurance, maintenance, appreciation, and equity — and get a clear recommendation.
Updated May 2026
Home purchase details
20.0% of home price
Annual % of home value
Annual % of home value
Expected annual appreciation
Rental cost details
Expected yearly rent increase
Time horizon & investment assumptions
If renting, expected annual return
Recommendation
Buying may be better.
Based on your inputs, buying saves you approximately $30,253 more than renting over 7 years after accounting for equity, appreciation, and investment opportunity cost.
Break-even year: Year 1 — buying becomes cheaper after this point.
Total Cost Difference
$30,253
Over 7 years
Estimated Equity
$245,691
If buying
Total Rent Paid
$202,289
Over 7 years
Investment Growth
$144,520
Down payment if renting
Over 7 years
Mortgage + taxes + insurance + HOA + maintenance
With annual increases
After appreciation
Value minus balance
Down payment invested
Cost minus equity/gains
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Buying a home involves more than just the mortgage payment. Property taxes, homeowner's insurance, HOA fees, and maintenance costs — typically 1–2% of the home's value annually — add significantly to your monthly outlay. However, each mortgage payment builds equity, and home appreciation can grow your net worth over time.
Renting offers flexibility and lower upfront costs, but rent typically increases each year. Over a decade, cumulative rent payments can be substantial. However, if you invest your down payment instead of tying it up in a home, that capital can grow — potentially offsetting the lack of equity accumulation.
One of the key trade-offs is equity vs. investment growth. A homeowner builds equity through loan paydown and appreciation. A renter who invests their down payment in a diversified portfolio may achieve comparable or greater returns, depending on market conditions. This calculator models both scenarios side by side.
The break-even year is the point at which buying becomes cheaper than renting on a cumulative basis. In most markets, this is between 4–7 years. If you plan to move before the break-even point, renting is often the more financially sound choice. If you plan to stay long-term, buying typically wins.