Monthly cash flow
Rent versus principal & interest, property tax, insurance, HOA, and a maintenance reserve.
Free ToolBreak-evenPrice-to-rent
Rent vs Buy Calculator 2026
Decide if it is cheaper to rent or buy: compare monthly rent to ownership (PITI + HOA + maintenance), check price-to-rent, and see how many years until buying breaks even under your assumptions.
By Sammy S. · Founder · AuthorUpdated for 2026
Monthly gap
Price-to-rent
Break-even years
PITI + maintenance
How to use this calculator
1
Enter rent and home price
Use the rent you actually pay (or expect to pay) and the purchase price you are considering.
2
Set financing and ownership costs
Adjust down payment, rate, term, property tax, insurance, HOA, maintenance, and closing costs.
3
Review the monthly gap
See whether ownership costs more or less than rent each month before counting equity.
4
Check break-even years
See how long the model needs for equity to catch the rent path’s invested cash under your assumptions.
How to use this rent vs buy calculator
Enter rent and purchase assumptions, compare monthly costs, then review break-even under your appreciation and opportunity-return settings. For statewide medians, open Rent vs Buy by State.
Rent & purchase details
Costs, financing, and break-even assumptions
Rent vs purchase
Loan & ownership costs
Typical 0.5–2%
Break-even assumptions
Ownership includes P&I, property tax, insurance, HOA, and maintenance. Break-even compares home equity to cash-to-close invested at your opportunity return—selling costs and tax deductions are not included.
Quick scenarios
Illustrative directions — run your numbers above
Rent $1,800 · $400k home~15 yr break-even
Rent $2,100 · $750k homeUsually rent-lean
Rent $2,000 · $250k home~2 yr break-even
Direction depends on rate, taxes, insurance, and stay length.
Why use a rent vs buy calculator?
A rent vs buy calculator turns a fuzzy “should I keep renting?” question into three numbers you can stress-test: the monthly ownership gap, price-to-rent, and break-even years under your rate, tax, insurance, and stay assumptions.
Listing price alone is not enough. Two homes at the same price can diverge once HOA dues, insurance, and local effective property tax enter the picture—and a short stay can erase a buy-lean monthly gap.
Price-to-rent rule of thumb
Home price ÷ annual rent — a screen, not a verdict
| Ratio | Lean | Note |
|---|---|---|
| Under ~15× | Often buy-lean | Ownership can look competitive if you stay long enough |
| ~15×–20× | Close call | Rate, taxes, insurance, and stay length decide it |
| Over ~20× | Often rent-lean | Cash-flow usually favors renting unless you stay many years |
How to use
How to use the rent vs buy calculator
- 1
Enter rent and home price
Use the rent you actually pay (or expect to pay) and the purchase price you are considering.
- 2
Set financing and ownership costs
Adjust down payment, rate, term, property tax, insurance, HOA, maintenance, and closing costs.
- 3
Review the monthly gap
See whether ownership costs more or less than rent each month before counting equity.
- 4
Check break-even years
See how long the model needs for equity to catch the rent path’s invested cash under your assumptions.
What this rent vs buy calculator compares
Price-to-rent
Home price divided by annual rent—a quick screen for whether ownership looks expensive relative to renting.
Break-even years
When modeled equity catches the rent path’s invested cash-to-close under your appreciation and opportunity-return assumptions.
Worked examples
Rent vs buy examples you can verify in the calculator
These scenarios use the same engine as the widget above (20% down, ~6.66% rate, 1% property tax, 1% maintenance, 3.5% closing costs, 3% appreciation / rent growth, 5% opportunity return unless noted). Change any input to match your market.
Typical starter: $1,800 rent vs $400k home
20% down, ~6.66% rate, 1% property tax, 1% maintenance—common national defaults.
Monthly rent$1,800
Home price$400,000
Monthly ownership$2,873
Monthly gap+$1,073
Price-to-rent18.5×
Cash to close$94,000
Break-even15 years
LeanRent leans ahead
High price-to-rent: $2,100 rent vs $750k home
Shows how a large ownership premium and high ratio can keep break-even beyond 30 years.
Monthly rent$2,100
Home price$750,000
Monthly ownership$5,256
Monthly gap+$3,156
Price-to-rent29.8×
Cash to close$176,250
Break-evenNot within 30 years
LeanRent leans ahead
Buy-lean market: $2,000 rent vs $250k home
Lower price-to-rent and a negative monthly gap often pull break-even forward.
Monthly rent$2,000
Home price$250,000
Monthly ownership$1,852
Monthly gap−$148
Price-to-rent10.4×
Cash to close$58,750
Break-even2 years
LeanBuy leans ahead
Decision framework
When renting usually wins vs when buying usually wins
Use the calculator for your address and stay plan—then sanity-check against these patterns. Numbers are a screen; life plans still decide.
Renting often leans ahead when…
- Price-to-rent is high (often 20×+) and the monthly ownership gap is large
- You may move within ~5 years (cash-to-close and selling costs take time to recover)
- Insurance or HOA costs are high for the address you are considering
- You need flexibility more than forced equity savings right now
Buying often leans ahead when…
- Price-to-rent is lower and the monthly gap is small or negative
- You expect to stay past modeled break-even (and preferably longer)
- You can put ~20% down without draining emergency reserves
- You value payment stability and principal paydown as forced savings
Stay length, rates, and insurance still decide the outcome
How long you will stay
Short stays usually favor renting even when the monthly gap is small, because cash-to-close and selling costs take years to recover.
Mortgage rate sensitivity
A half-point rate change can swing hundreds of dollars a month in P&I. Re-run the calculator when you get a lock quote—not just when you start shopping.
Insurance & HOA
Statewide averages hide wildfire, wind, flood, and condo HOA spikes. Use a real quote for the address; those line items often flip a close call.
How we calculate rent vs buy
Last reviewed 2026-07-30. Same formulas as the live calculator.
Ownership cash cost is PITI + HOA + maintenance. Break-even walks loan balance, home value, and a rent-path investment of cash-to-close (plus any monthly ownership premium) forward year by year for up to 30 years.
| Metric | Formula |
|---|---|
| Loan amount | Home price − down payment |
| Cash to close | Down payment + (home price × closing-cost %) |
| Monthly P&I | Standard amortizing mortgage payment on loan amount |
| Monthly ownership | P&I + property tax/12 + insurance/12 + HOA + (price × maintenance %)/12 |
| Monthly gap | Monthly ownership − monthly rent |
| Price-to-rent | Home price ÷ (monthly rent × 12) |
| Break-even year | First year equity ≥ rent-path invested cash (opp. return + ownership premium) |
Not included in this model
- Mortgage interest and property-tax deductions (itemized)
- PMI / MIP if down payment is under 20%
- Utilities (unless you add them into rent)
- Selling costs, realtor commissions, and capital gains on sale
- Moving costs, furniture, and renovations
- Flood, earthquake, or wind riders beyond your insurance input
Rent vs buy glossary
Quick definitions for the metrics shown in the results panel.
- Monthly ownership (PITI + extras)
- Principal & interest plus property tax, insurance, HOA, and a maintenance reserve. This is the all-in monthly cash cost of owning before counting equity build.
- Monthly gap
- Ownership cost minus rent. Positive means buying costs more each month before equity; negative means buying is cheaper on cash flow.
- Price-to-rent ratio
- Home price ÷ (monthly rent × 12). A quick screen: higher ratios often lean rent; lower ratios often lean buy—still verify insurance, taxes, and stay length.
- Cash to close
- Down payment + closing costs. Treated as capital a renter could invest instead of putting into the home.
- Break-even years
- First year (1–30) where modeled home equity ≥ the rent path’s invested cash-to-close (and any ownership premium invested) after your opportunity return, appreciation, and rent growth.
- Opportunity return
- Assumed annual return on cash you would not sink into the home if you kept renting. Higher returns make buying harder to beat; lower returns favor buying sooner.
Related housing tools
Rent vs buy calculator FAQs
Enter your monthly rent and home purchase details. The tool estimates monthly ownership (principal & interest, property tax, insurance, HOA, and a maintenance reserve), compares it to rent, shows price-to-rent, and models a break-even year where home equity exceeds the rent path’s invested cash-to-close after an opportunity return.
It depends on your market, mortgage rate, down payment, taxes, insurance, and how long you will stay. High price-to-rent markets and short stays often favor renting on cash flow; lower ratios and longer stays often favor buying. Run your numbers—statewide averages alone are not enough.
Home price ÷ annual rent. A common rule of thumb: above ~20× often favors renting on cash-flow; below ~15× often favors buying. Local HOA dues, insurance, and stay length still matter more than the ratio alone.
It is the first year (within 30) where modeled home equity is at least as large as the amount a renter would have if they invested cash-to-close (and any monthly ownership premium) at your opportunity-return rate, with your appreciation and rent-growth assumptions.
Many households need several years because down payment, closing costs, and selling costs take time to recover. This calculator’s break-even is a model under your appreciation and opportunity-return inputs—not a guarantee. Re-run it with conservative appreciation if you are unsure.
Yes. Monthly ownership includes principal & interest, property tax (from your effective rate), homeowners insurance, optional HOA, and a maintenance reserve. Enter local tax and insurance quotes when you have them.
No. This personal calculator treats rent as the amount you enter (utilities are only included if you add them to rent). Mortgage interest and property-tax deductions are not modeled—results are pre-tax cash-flow illustrations.
Down payment plus closing costs (as a percent of price). It is the cash a buyer typically needs at closing before moving costs, prepaid interest, or reserves. The break-even model treats that cash as invested on the rent path at your opportunity-return rate.
No. Job stability, credit, emergency reserves, local list prices, selling costs, and personal preference matter. Use this for structure, then confirm insurance quotes and closing estimates with local professionals.
See Rent vs Buy by State for ACS median rent, price-to-rent rankings, and statewide modeled ownership across all 50 states and DC—then personalize those benchmarks here.
By Sammy S. · Founder · AuthorUpdated for 2026
Educational planning aid—not mortgage, insurance, or tax advice. Confirm local quotes before deciding.
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