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PlainCalc

Rent vs. Buy Calculator

The honest version: not just monthly cost, but where your net worth ends up if you buy versus rent and invest the difference.

Updated October 2026

Data verified for 2026. Educational estimates only, not financial or tax advice.

Buying
$
%
%
%/yr
$/yr
%/yr
$/mo
%
%
%/yr
US long-run average is about 3–4%.
Renting
$
%/yr
$/yr
Assumptions
%/yr
After 7 years
Renting wins by $55,870
Renting stays ahead for the whole 7-year period.
Net worth if you buy (yr 7)
$169,513
home equity after selling costs + investments
Net worth if you rent (yr 7)
$225,383
down payment + monthly savings, invested
First-year monthly cost of owning
$3,039
P&I $2,189 + tax, insurance, upkeep
First-year monthly rent
$2,217
rising 3%/yr
Net worth over time
Yr 0Yr 2Yr 4Yr 6Yr 7
Total cash out over 7 years: $352,881 buying vs $203,689 renting. The net-worth comparison above is what matters, because buying converts part of that spending into equity while renting frees cash to invest.
Rent vs. BuyRenting wins by $55,870Results ↓

How this rent vs. buy calculator works

Most rent-vs-buy comparisons stop at “mortgage payment vs rent,” which is misleading in both directions. Owning costs more than the mortgage (property tax, insurance, maintenance, HOA, and 8–10% of the home's value in closing and selling costs), but part of every payment builds equity and the home usually appreciates. Renting costs less up front, and a disciplined renter can invest the down payment and any monthly savings.

This calculator runs both paths month by month for the years you plan to stay and compares net worth at the end: for the buyer, the home's sale value minus selling costs and the remaining mortgage; for the renter, the invested down payment and monthly savings grown at your assumed return. The year the buyer's line crosses the renter's is the break-even point.

The inputs that swing the answer

  • Years you'll stay. The single biggest factor. Transaction costs make buying a loser for short stays; nationally the break-even is typically 4–7 years.
  • Price-to-rent ratio. Divide the home price by annual rent. Below 15, buying usually wins; above 20, renting often does. A $400,000 home renting for $2,200 is a ratio of 15.
  • Appreciation vs. investment return. Homes have appreciated about 3–4% a year long-term; a diversified stock portfolio about 7% after inflation. Because the buyer is leveraged (a 3% gain on a $400,000 home is a 15% gain on an $80,000 down payment), modest appreciation still competes with higher stock returns.
  • Mortgage rate. At 3% buying was almost always right; at 7% the math is much closer and renting wins in many high-cost metros.

What the calculator doesn't capture

Tax deductions for mortgage interest (only matter if you itemize, which most households no longer do), the value of stability and control, the risk of a bad local market, the freedom to move for a better job, and whether you'd actually invest the difference rather than spend it. Numbers inform the decision; they don't make it.

Frequently asked questions

Is it better to rent or buy in 2026?+

It depends on your city and how long you'll stay. With mortgage rates near 7%, renting wins for short stays and in metros with high price-to-rent ratios (coastal California, New York, Seattle). Buying tends to win for 7+ year stays in the Midwest and South. Enter your own numbers above.

How many years until buying beats renting?+

The calculator shows the break-even year for your inputs. Nationally it's often 4–7 years; with high closing costs or slow appreciation it can be 10+.

Does it account for the down payment being invested?+

Yes. The renter's path invests the down payment and closing costs on day one, plus any month where owning would have cost more, at your assumed return.

What appreciation rate should I use?+

3–4% is the long-run US average. Use lower for a conservative estimate; using recent boom-year figures (10%+) will make buying look better than it likely is.