About Research Education
Rent vs. Buy Calculator

Should you rent or buy?

The honest math. We compare the true cost of homeownership — including closing costs, maintenance, opportunity cost, and tax benefits — against renting and investing the difference.

Your Scenario
Target home price
$
Monthly rent (comparable)
$
Down payment
%
Mortgage interest rate
%
Mortgage term
How long will you stay?
yrs
Buying costs
Buying closing costs
%
Origination fees, title, appraisal.
Selling costs
%
Agent commissions (usually 6%).
Property tax (yearly)
%
Maintenance (yearly) iThe "1% Rule" suggests saving 1% of home value annually for repairs. Older homes may need more.
%
HOA (monthly)
$
Home insurance (yearly)
$
Renting costs
Renter's insurance (monthly)
$
Rent inflation (yearly)
%
Market assumptions
Home appreciation (yearly) iNational average is around 3-4%. Hot markets may be 5-7%+, slower markets 1-2%. Location matters.
%
Investment return (yearly)
%
Return on saved cash invested in the market.
Tax assumptions
Tax bracket iYour marginal tax rate — applied to your last dollar earned. Used to calculate deduction benefits.
%
Filing status
Affects standard deduction threshold.
Behavioral
Savings discipline iIf renting is cheaper, what % of monthly savings will you actually invest? Be honest.
%
What % of rent savings you'll actually invest.
The Verdict After 7 years
Buying wins
by $12,450 in net wealth
Buying wealth $0
Renting wealth $0
Breakeven year
i Loading insight...
Net Wealth Over Time
Year 1 to 7
Monthly Cost Breakdown
Year 1
Buying
Mortgage (P&I)$0
Property tax$0
Home insurance$0
Maintenance$0
HOA$0
Subtotal$0
− Tax savings$0
Effective$0
Renting
Monthly rent$0
Renter's insurance$0
Total$0
Renting is $500/mo cheaper
How we calculate this
  • Buying wealth: Home value − mortgage balance − selling costs (6%), plus any side investments.
  • Renting wealth: Initial down payment + closing costs invested at 7%, plus monthly savings invested.
  • Tax benefits: Mortgage interest + property tax deductions, only if itemizing exceeds standard deduction.
What most calculators miss

The hidden costs of buying

Most rent-vs-buy calculators only look at the mortgage payment. We look at everything — closing costs, maintenance, opportunity cost, and the discipline gap.

01 · Maintenance

The 1% Rule

Renters call the landlord when the fridge breaks. Owners write a check. Budget 1% of home value per year for maintenance.

New roof? HVAC? Water heater? It's not "if" — it's "when."

02 · Opportunity Cost

Money making money

The biggest hidden cost is the money you didn't invest. A $70k down payment could compound in the market.

If markets return 7% and your home appreciates 3%, your equity is working harder elsewhere.

03 · Tax Benefits

The deduction myth

Mortgage interest and property taxes are deductible — but only if itemizing exceeds the standard deduction ($14,600 single / $29,200 married).

Most homeowners don't actually benefit because the standard deduction is higher than their itemized total.

04 · Behavioral

The discipline gap

The math assumes perfect discipline. Will you really invest 100% of the rent savings every single month?

Homeownership is forced savings. Renters need to manually invest — and life gets in the way.

05 · The SALT Cap

Property tax limits

Property tax deductions are capped at $10,000/year (the SALT cap). Mortgage interest is only deductible on the first $750k of debt.

In high-cost areas, this materially shrinks the tax advantage.

06 · The Upside

Stability & equity

Buying locks in your housing cost — no rent hikes — and acts as forced savings.

If you stay long enough, these benefits often outweigh the hidden costs.