Renting isn't "throwing money away" and buying isn't automatically winning. Here's what each path really costs over the years you actually plan to stay.
The fair comparison isn't rent vs. mortgage payment — it's rent vs. net cost of buying: everything you'd pay out (down payment, mortgage, taxes, insurance, maintenance) minus the equity you'd walk away with if you sold at the projected home value. Buying front-loads huge costs, then claws them back through equity. That's why the answer flips depending on how long you stay.
Honesty about this model: it's simplified. Rent is held flat (real rents usually rise — that favors renting here), and we ignore selling costs of roughly 6–8% (favors buying), the return you'd earn investing the down payment instead (favors buying), and any tax deductions (favors renting). Some of these roughly cancel out, but if you'll stay under ~3 years, selling costs alone usually hand the win to renting.
Estimates are for education, not financial advice. Run your own numbers with local rents and taxes before deciding anything.
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Buying isn't automatically "throwing away money less than renting" — both have costs that don't build equity. Renting spends rent. Buying spends mortgage interest, property tax, insurance, maintenance, and the opportunity cost of the cash tied up in your down payment, plus real transaction costs when you buy and sell. This tool weighs all of that against your expected time in the home, rent growth, and home appreciation, and gives you the honest verdict for your timeline rather than a slogan.
Because buying carries big one-time costs — closing costs going in, agent commissions coming out — owning usually needs several years to come out ahead. A common break-even lands somewhere around five years, but it swings a lot with local prices, rent levels, and how fast values rise. If you're likely to move in two or three years, renting frequently wins even in a "good market"; stay eight years and buying usually pulls clearly ahead.
Does this count maintenance and repairs?
Yes — ownership includes upkeep that renters don't pay. Leaving it out is the single biggest way rent-vs-buy math gets rigged in favor of buying.
What about the down payment I'd otherwise invest?
The model treats your down payment as money that could have earned a return elsewhere, so buying has to beat that, not just beat rent.
Is buying always the better long-term choice?
Often, but not always. Flexibility, career moves, and uncertain plans have real value. The right answer is the one that fits your timeline and life, which is exactly what the calculator above is for.