Rent vs Buy Calculator
By FiscallyAI Editorial (AI-assisted) • Updated 2026-03-01 • Educational tool
The real math behind your housing decision. Closing costs, hidden expenses, and break-even analysis.
Renting
Buying
Total Cost of Renting
5 Years
$98,000
10 Years
$216,000
15 Years
$356,000
Total Cost of Buying
5 Years
$142,000
10 Years
$278,000
15 Years
$416,000
Verdict
Break-Even Point
6.5 years
Recommendation
Buy if staying 7+ years
Net Equity (after selling)
$45,000
What This Calculator Includes
Renting costs: Monthly rent + annual rent increases. That's it. Renters insurance (~$15/month) not included.
Buying costs: Mortgage payment (P&I), property taxes, homeowners insurance (~0.5%/year), maintenance (1%/year), closing costs (2-3% upfront, 6% when selling), and opportunity cost of down payment.
Equity calculation: Home value appreciation minus selling costs (6% realtor fees) minus remaining mortgage balance.
The Break-Even Point
The break-even point is when buying becomes cheaper than renting. If you plan to stay longer than the break-even point, buying usually wins. If shorter, renting often makes more sense.
In 2026, with interest rates at 6.5-7%, break-even points are longer than they were in 2020-2021. What used to take 3-4 years now takes 6-8 years in many markets.
Factors That Change the Math
- High-cost cities: Break-even takes longer (8-12 years in SF, NYC). Renting often wins short-term.
- Low-cost areas: Break-even is shorter (4-6 years). Buying wins sooner.
- Remote work: If you can move to a cheaper area, buying becomes much more attractive.
- Rent control: If your rent is locked in, the break-even extends further.
Disclaimer: This calculator provides estimates for educational purposes only. Real estate markets vary significantly by location. Property taxes, insurance, and appreciation rates differ wildly. Not financial advice. Consult a financial advisor and real estate professional.