Rent vs buy: which is cheaper?
Buying isn't automatically "better than throwing money away on rent." It comes with big one-time costs (down payment, closing, and ~6% to sell) plus ongoing taxes, insurance and maintenance. Renting is simpler and flexible. This calculator compares the true net cost of each over the years you plan to stay — counting the equity and home-value growth you'd gain by owning, and the rising rent you'd pay by renting.
The rule of thumb: the longer you stay, the more buying wins, because you spread those one-time costs over more years and build equity.
Frequently asked questions
Is it cheaper to rent or buy?
It depends on the home price, rent, how long you stay, and your mortgage rate. Buying tends to win the longer you stay (you build equity); renting can win for short stays because of buying/selling costs.
What's the break-even on buying?
Roughly the number of years where total cost of owning drops below renting. Below it, renting is usually cheaper; above it, buying typically wins.
Does this include maintenance and taxes?
Yes — it factors annual ownership costs (property tax, insurance, maintenance) plus buying and selling costs, home appreciation and rising rent.
Is this exact?
It's a solid estimate based on your inputs and steady assumptions. Real markets, rates and home values vary.
Calculations use steady assumptions and exclude taxes on gains, PMI and closing-cost variations.