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↑ +3.2% YoY $412k
Median US home price
NAR, Q1 2026
Buy vs rent calculator
Should you buy a home or keep renting?
The real math — not what your family tells you. We account for taxes, maintenance, opportunity cost, and what you'd earn if you invested the down payment instead.
Buying clearly wins over 7 years
Over 7 years, buying leaves you $93,123 better off in net worth compared to renting and investing the difference.
Buying starts winning in year 1. If you stay that long, buying builds more wealth.
$3,472
True monthly cost to own
$2,215
Monthly cost to rent
$170,242
Net worth from buying in 7 yrs
$77,119
Net worth from renting in 7 yrs
Buying requires $54,000 upfront — $40,000 down payment plus $14,000 in closing costs. You'll also pay $210/mo in PMI until you reach 20% equity.
Which path builds more wealth?
Net worth after selling costs (buying) vs investing the down payment (renting).
Buying net worth
Renting net worth
Total cash spent over time
Every dollar out of pocket — mortgage, taxes, maintenance vs rent paid.
Buying total cost
Renting total cost
FAQ
Buy vs rent — the questions everyone asks
The honest answers to the most important housing decision you'll make.
It depends on your local market, how long you plan to stay, and what you do with your down payment if you rent instead. Buying is typically cheaper over longer time horizons (7+ years) in markets with moderate home prices and steady appreciation. In expensive markets with high property taxes and slow appreciation, renting and investing the down payment can produce more net worth over 5–10 years. The calculator above models your specific situation.
The typical break-even point when buying starts producing more wealth than renting would have is 3 to 7 years, depending on your market. Key factors that shorten it: high home appreciation, low property taxes, and a small down payment foregone by renters. Factors that lengthen it: high closing costs, slow appreciation, high property taxes, and a large down payment that could have compounded as investments.
PMI stands for Private Mortgage Insurance. You typically pay it when your down payment is less than 20% of the home's purchase price. PMI protects the lender — not you — in case you default. It usually costs 0.5–1.5% of the original loan amount per year, added to your monthly mortgage bill. PMI is automatically cancelled once you reach 20% equity based on the original purchase price, or you can request removal when you reach 20% equity based on the current appraised value.
The most commonly overlooked homeownership costs are: closing costs (2–5% of purchase price, due upfront), PMI if your down payment is below 20%, property taxes (1–1.5% of home value per year), homeowner's insurance (~$1,200–$2,000/year), HOA fees where applicable, and maintenance and repairs (budget 1–2% of home value per year). These costs can add $500–$1,500 per month beyond the mortgage payment itself.
Opportunity cost is what you give up by choosing one option over another. When you buy a home, your down payment is no longer available to invest in stocks, index funds, or other assets. If the market returns 7–10% annually over your time horizon, that is the opportunity cost of tying up your down payment in home equity. This calculator includes opportunity cost as a line item so you can compare the true wealth-building potential of both paths, not just the monthly cash flow.