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Renters
Rent vs Buy Calculator
Should you rent or buy? The right answer depends on home prices, mortgage rates, your time horizon, and what you'd otherwise invest. This calculator runs the full math.
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How to use this calculator
- Enter your current monthly rent and the home price you'd buy.
- Add down payment, mortgage rate, and expected home appreciation.
- Set your time horizon and what return you'd earn investing the down payment elsewhere.
- We'll tell you which wins financially and by how much.
What your results mean
Buying wins when home appreciation + tax benefits + equity built > rent saved + investment returns on the down payment. Buying almost always wins past year 7. Renting wins for short stays or in markets where prices outpace incomes (NYC, SF, Toronto-style risk).
When buying beats renting (and when it doesn't)
- Buy if you'll stay 5+ years and home prices are reasonable vs rent (price-to-rent ratio under 20).
- Rent if you might move within 3 years — transaction costs (~10% round trip) eat short-hold gains.
- Rent if you're in a top-5 expensive US metro AND rents are subsidized (NYC rent control, etc.).
- Buy if you can put 20% down without draining your emergency fund.
- Tax benefits matter — mortgage interest + property tax deduction can shave 15-25% off the true cost.