Should you rent or buy where you live?
Example numbers for a typical US city. Use Change city for yours.
Buying a home () with down at on a loan, versus renting at with rent rising , over .
Tap any underlined value to change it. Everything else is under All assumptions.
Tips if you are not sure how long you will stay, or own your home outright
- Not sure how long you will stay: try a shorter number of years first; short stays usually favour renting.
- Own your home outright: set the down payment equal to the price to compare keeping it with selling and renting.
Buying leaves you with $282,992 in home equity. Renting and investing the difference leaves $377,858.
Home equity is what you would keep after selling. Invested savings is the down payment plus the monthly difference, invested at the assumed 7% return. Nominal dollars, not adjusted for inflation (All assumptions can show today's dollars). Both sides are before any tax on gains; in practice home-sale gains are often tax-free up to a limit while investment gains usually are not.
The answer only changes if home prices rise more than 4.75% a year. You assumed 3%. It also changes if your investments return less than 3.5% a year instead of 7%.
How we calculate thisFree, no ads, no account.
Pin locks in exactly what you see now, so finish your edits first. Then change the city, the years or any value, and the two are shown side by side.
- Buy: home equity after selling costs
- Rent: invested savings
- Buy if prices rise 4.75%/yr
Buying costs more per month by: $1,089 in Year 1, $643 in Year 10.
Buying a home () with down at on a loan, versus renting at with rent rising , over .
Tips if you are not sure how long you will stay, or own your home outright
- Not sure how long you will stay: try a shorter number of years first; short stays usually favour renting.
- Own your home outright: set the down payment equal to the price to compare keeping it with selling and renting.
Projected net worth at the end of each year: home equity if you sold, versus invested money if you rented. Nominal dollars.
| Year | Buy | Rent | Rent ahead by |
|---|---|---|---|
| 1 | $78,558 | $131,521 | +$52,963 |
| 2 | $97,849 | $154,027 | +$56,178 |
| 3 | $117,904 | $177,589 | +$59,685 |
| 4 | $138,761 | $202,267 | +$63,506 |
| 5 | $160,457 | $228,129 | +$67,672 |
| 10 | $282,992 | $377,858 | +$94,866 |
Popular metros
Pick a city to prefill realistic local prices, rent, property tax, and insurance.
- New YorkNew York$735,000 home, $3,625/mo rent
- Los AngelesCalifornia$965,000 home, $2,950/mo rent
- ChicagoIllinois$360,000 home, $2,250/mo rent
- HoustonTexas$310,000 home, $1,650/mo rent
- PhoenixArizona$445,000 home, $1,725/mo rent
- PhiladelphiaPennsylvania$390,000 home, $1,925/mo rent
- San AntonioTexas$280,000 home, $1,425/mo rent
- San DiegoCalifornia$935,000 home, $3,000/mo rent
- DallasTexas$365,000 home, $1,675/mo rent
- San JoseCalifornia$1.56M home, $3,775/mo rent
- AustinTexas$425,000 home, $1,650/mo rent
- JacksonvilleFlorida$355,000 home, $1,700/mo rent
Why this calculator is different
Most rent-vs-buy tools hide the assumptions that decide the answer. This one shows them in the sentence at the top, tells you which single number would flip the verdict, and models the parts that usually get skipped: PMI under 20% down, the post-2017 standard deduction and SALT cap, selling costs at exit, and inflation-adjusted dollars.
- Rent vs buy: net worth year by year, break-even year, and the appreciation rate that flips it.
- Mortgage payoff: see how extra payments cut years and interest. Mortgage calculator
- Savings and compound interest: growth from contributions and time. Savings calculator