Rent vs Buy Home Calculator 🏠
Compare the financial implications of renting vs buying a home in the USA
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Note: Location affects property tax, insurance, and HOA estimates
Financial Comparison
Recommendation
Based on your inputs, renting appears to be more cost-effective in the short term (5 years), but buying may become more favorable if you stay in the home for 7+ years.
Breakeven Point: 7 years
Year-by-Year Comparison
This chart shows how the cumulative costs of renting vs buying change over time. The breakeven point is where the lines cross.
Cost Breakdown (Buying)
This breakdown shows where your money goes when you buy a home. Principal payments build equity, while interest, taxes, and insurance are expenses.
Breakeven Analysis
Years until buying becomes financially better than renting: 7 years
Equity Growth
Estimated home equity after 5 years: $65,000
Cost Distribution
When buying, 40% of payments go toward principal (equity)