Compare renting vs buying a home. Free online rent vs buy calculator with break-even analysis and cost comparison.
Compare the costs of renting vs buying a home with our free online rent vs buy calculator. Get detailed analysis including break-even point, total costs, and long-term financial implications.
Enter your details above to see the rent vs buy comparison.
Monthly Rent: $2,000
Home Price: $400,000
Down Payment: $80,000 (20%)
Monthly Mortgage: $1,618
Break-even Point: 4.2 years
Recommendation: Buying becomes cheaper after 4.2 years
The decision depends on your financial situation, lifestyle, and long-term goals. Buying builds equity but requires upfront costs and maintenance. Renting offers flexibility but doesn't build wealth.
The break-even point is when the total cost of buying equals the total cost of renting. After this point, buying becomes more financially advantageous than renting.
Buying costs include down payment, closing costs, property taxes, insurance, maintenance, utilities, and potential HOA fees. Don't forget about ongoing repairs and renovations.
Renting costs include monthly rent, security deposit, utilities (if not included), renter's insurance, and potential application fees. Some rentals may include maintenance costs.
Location significantly impacts both rent and home prices. In expensive markets, renting might be more affordable initially, while in affordable markets, buying might make more sense.