Rent vs buy calculator
What you'd pay for the home.
Under 20% adds mortgage insurance.
For a similar home nearby.
7.4% was the 30-year average on October 15, 2026.
Home prices, taxes and the costs of owning
A year. US prices rose 4.3% a year since 1991.
Of value a year. US average 0.9%.
Of value a year. US average about 0.5%.
Of value a year. Budget 1% to 3%.
A month.
Of the price. Usually 2% to 5%.
Of the sale price, with agent fees.
Rent growth and investing
A year. US rents rose 3.3% a year since 1991.
A month. About $14 on average.
A year, on what the renter invests.
Renting comes out ahead over 10 years
After 10 years, buying leaves you $283,520 once the home is sold, and renting while investing the difference leaves you $366,951: $83,431 more by renting. Buying doesn't pull ahead within 30 years.
Over 10 years, buying wins if your investments would earn less than 4.9% a year, or if a similar home rents for more than $2,401 a month.
Owning, first month
- Mortgage principal and interest
- $2,216
- Property tax
- $300
- Home insurance
- $167
- Maintenance
- $333
- Total
- $3,016
Renting, first month
- Rent and insurance
- $2,014
- Renter invests
- $1,002
- Buying, after 10 years
- $283,520
- Home equity after selling costs, plus savings
- Renting, after 10 years
- $366,951
- The down payment and monthly savings, invested
- Break-even
- None
- Buying doesn't pull ahead within 30 years
- Price-to-rent ratio
- 16.7
- The price divided by a year's rent
Year-by-year table
| Year | Home equity | Buying | Renting | Ahead |
|---|---|---|---|---|
| 0 | $80,000 | $48,000 | $92,000 | Rent +$44,000 |
| 1 | $100,208 | $66,832 | $112,298 | Rent +$45,466 |
| 2 | $121,386 | $86,575 | $133,890 | Rent +$47,315 |
| 3 | $143,583 | $107,275 | $156,874 | Rent +$49,599 |
| 4 | $166,852 | $128,983 | $181,359 | Rent +$52,376 |
| 5 | $191,247 | $151,750 | $207,458 | Rent +$55,708 |
| 6 | $216,827 | $175,631 | $235,298 | Rent +$59,667 |
| 7 | $243,653 | $200,686 | $265,015 | Rent +$64,329 |
| 8 | $271,790 | $226,975 | $296,754 | Rent +$69,780 |
| 9 | $301,305 | $254,563 | $330,676 | Rent +$76,113 |
| 10 | $332,272 | $283,520 | $366,951 | Rent +$83,431 |
Rent vs buy calculator by Points Frog ↗ · An educational estimate, not financial advice.