Rent vs Buy Calculator: Is It Cheaper to Rent or Buy a Home?

By the CallARealtor team · Published November 3, 2026 · Updated November 3, 2026

Published by the CallARealtor team · How we researchSources linked belowIndependent, not a brokerage or lender

Quick answer: Buying usually wins only if you stay long enough for equity and price growth to outweigh closing costs, selling costs and upkeep. Enter your numbers to see the break-even year.

Should you rent or buy?

Example numbers are filled in. Change any of them and results update instantly.

Monthly rent now ($)

Rent increase (% per year)Assumption

Home price ($)

Down payment (%)

Interest rate (%)Example rate, not a quote. See the Freddie Mac weekly average.

Years you plan to stay

More assumptions

Property tax (% per year)

Insurance ($ per year)

Maintenance (% of price per year)

HOA ($ per month)

Home price growth (% per year)

Return on cash you don't put down (% per year)

Buying closing costs (% of price)

Selling costs (% of price)Commission and seller closing costs

PMI (% of loan per year)

Renters insurance ($ per year)

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Free, no obligation. CallARealtor is not a brokerage or lender.

CallARealtor is an independent information site, not a real estate brokerage or lender, and is not affiliated with the National Association of REALTORS®. Results are estimates for planning, not loan offers or financial advice.

How the comparison works

Renting adds up rent (rising each year by the rate you choose) and renters insurance.

Buying adds up mortgage interest, property tax, insurance, maintenance, HOA, PMI, closing costs to buy, and the cost to sell at the end. Then it subtracts the home's price growth. It also counts what your down payment and closing costs could have earned if you had invested them instead. Principal you pay is not counted as a cost, because it becomes equity you get back when you sell.

Assumptions

Every growth and return rate is an assumption you can change. Home prices can fall as well as rise.
The example rate (6.25%) is not a quote. See the Freddie Mac PMMS for weekly averages.
Taxes on investment gains, mortgage interest deductions and capital gains are not included. Ask a tax professional about your situation.
Selling costs default to 6% of the sale price as an example. Commissions are negotiable.

Frequently asked questions

How long do I need to stay for buying to make sense?

It depends on prices, rates and rent in your area. Buying and selling costs mean short stays often favor renting. Use the break-even year above with your own numbers.

Is rent money wasted?

No. Rent buys housing and flexibility. Owners also have costs that build no equity, like interest, tax, insurance and repairs. The fair comparison is between those costs.

Why does the calculator count investment returns?

Money used for a down payment can't earn returns elsewhere. Counting that lost return makes the comparison fair.

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