Rent vs Buy Calculator
The rent vs buy debate is one of the biggest financial decisions you'll make. This calculator compares the true total cost of buying versus renting over your time horizon — including equity, opportunity cost, taxes, and maintenance — and gives you a Worth It Score for buying.
US historical average: ~3.5%/year
Frequently Asked Questions
Is it cheaper to rent or buy a home right now?
In 2026, with mortgage rates elevated, buying is often more expensive month-to-month than renting in most US markets. However, over a 7-10+ year horizon, buying still builds equity and long-term wealth for most homeowners. The right answer depends on how long you plan to stay, your local market, and your financial situation.
How long do you need to stay in a home for buying to be worth it?
The typical break-even point in 2026 is 5-8 years, though this varies significantly by market. In expensive cities like San Francisco or NYC, break-even can be 10+ years. In more affordable markets, you may break even in 3-4 years.
What costs do first-time homebuyers forget to budget for?
Common overlooked costs include: closing costs (2-5% of purchase price), property taxes (0.5-2.5% annually), homeowner insurance ($1,200-2,000/year), HOA fees if applicable, and maintenance (budget 1-2% of home value annually for repairs and upkeep).
Does renting throw money away?
Not necessarily. Renting provides flexibility, zero maintenance costs, and the ability to invest the difference between rent and ownership costs. If invested wisely, the down payment and monthly savings can generate returns that rival home equity gains. The 'renting is throwing money away' idea oversimplifies a complex decision.
What is a good price-to-rent ratio?
The price-to-rent ratio divides home price by annual rent. Under 15 favors buying, 15-20 is neutral, over 20 generally favors renting. Most major US cities in 2026 have ratios of 20-30+, which tilts toward renting from a pure financial standpoint unless you plan to stay long-term.