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Rent vs buy calculator

Quick answer

Buying usually beats renting if you stay long enough — often 4 to 7 years — for home appreciation and principal paydown to outweigh closing costs, selling costs, maintenance and interest. This calculator compares the net cost of each path over your expected stay, including what your down payment could earn if invested instead.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Over 7 years, it's cheaper to

Rent

Savings of about $15,909

Net cost of buying
$181,285
Net cost of renting
$165,376
Monthly cost to own (incl. maintenance)
$3,006
Estimated home value at sale
$430,456
Equity after selling costs
$116,720

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What this calculator includes

  • Mortgage payment, property taxes, insurance and PMI
  • Maintenance at 1% of home value per year
  • Buyer closing costs (3%) and selling costs (6%)
  • Home appreciation and rent growth
  • Opportunity cost of investing your down payment

Frequently asked questions

It's the number of years after which the net cost of owning drops below renting. Try changing 'years you'll stay' to find it.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.