Is this rent vs buy calculator really free?

Yes. This calculator is 100% free to use with no sign up, no account, no email address, and no credit card required. Just open the page and start calculating immediately.

Should I rent or buy a home?

It depends on how long you plan to stay, local home prices, mortgage rates, and rental costs. Generally, buying makes more financial sense if you plan to stay 5 or more years. Our calculator accounts for all major costs on both sides — mortgage interest, property taxes, maintenance, closing costs, and the opportunity cost of your down payment — to give you a clear, honest comparison.

What factors does this rent vs buy calculator include?

The calculator includes: mortgage payments (principal and interest), property taxes, homeowner's insurance, PMI (private mortgage insurance), HOA fees, maintenance and renovation costs, buying and selling closing costs, tax deductions for mortgage interest and property taxes, opportunity cost of the down payment, rent growth over time, home price appreciation, inflation adjustments, renter's insurance, broker fees, and security deposit opportunity cost.

How long do I need to stay to make buying worth it?

The break-even point varies by market, but typically ranges from 3 to 7 years. Upfront buying costs like closing fees and down payment opportunity cost are spread over the years you stay — the longer you stay, the more buying tends to win. Use the Years to Stay slider to find your personal break-even point.

Does this calculator work for all US cities?

Yes. The calculator works for any US city or market. Enter local values for home price, monthly rent, property tax rate, and mortgage rate to match your specific location — whether you are in New York, Los Angeles, Chicago, Houston, Phoenix, Philadelphia, San Antonio, San Diego, Dallas, Austin, San Jose, Seattle, Denver, Boston, Nashville, Miami, Atlanta, Portland, Las Vegas, Minneapolis, Tampa, Orlando, Sacramento, Pittsburgh, Columbus, Indianapolis, Charlotte, Raleigh, Baltimore, Washington DC, or anywhere else in the United States.

What is opportunity cost and why does it matter for rent vs buy?

Opportunity cost is the investment return you give up by tying your down payment up in home equity instead of investing it in the stock market or other assets. This is one of the most commonly overlooked costs of buying a home. The calculator credits renters with the compound investment gains on the down payment, making the comparison truly apples-to-apples.

Is buying always better than renting?

No. Renting is often the smarter financial choice, especially in high-cost cities, when mortgage rates are elevated, when you plan to move within a few years, or when the price-to-rent ratio in your market is very high. The right answer depends entirely on your specific numbers. That is why we built this calculator.

How does the mortgage interest deduction work in this calculator?

The calculator applies the mortgage interest deduction only when itemized deductions exceed your standard deduction (which depends on whether you file individually or jointly). Mortgage interest is only deductible on the first $750,000 of loan principal under the 2017 Tax Cuts and Jobs Act. SALT (state and local tax) deductions including property taxes are capped at $10,000 per year.

What is PMI and when do I need it?

PMI stands for Private Mortgage Insurance. Lenders typically require it when your down payment is less than 20% of the home's purchase price. PMI usually costs between 0.5% and 2% of the loan amount per year. Once you reach 20% equity, you can typically cancel PMI. Set the PMI rate slider to zero if your down payment is 20% or more.

How accurate is this rent vs buy calculator?

This is one of the most comprehensive and accurate free rent vs buy calculators available. It models costs year by year, accounts for inflation-adjusted expenses, includes tax deductions (with SALT and mortgage interest caps), models investment returns on the down payment, and includes often-overlooked costs like broker fees, security deposits, and renter's insurance. The key uncertainty is future projections — home price growth, rent growth, and investment returns — which you can adjust with the sliders.

What is a good price-to-rent ratio?

The price-to-rent ratio is the home price divided by annual rent. A ratio below 15 generally favors buying; between 15 and 20 is neutral and depends on your situation; above 20 generally favors renting. Many major US cities like San Francisco, New York, and Los Angeles have price-to-rent ratios above 30, which strongly favors renting unless you plan to stay for a very long time.

Can I use this calculator for condos, townhouses, or multi-family homes?

Yes. Enter the purchase price and applicable HOA fees for condos or townhouses. For multi-family properties where you plan to rent out units, the calculator does not model rental income — it is designed for primary residence comparison only.

Compare Buying Two Houses — Side‑by‑Side Cost Calculator

Torn between two homes? This free tool compares the true, all‑in cost of owning two different houses side by side, so you can see which home actually costs less over the years you plan to stay. Adjust each house independently, or link fields to keep shared assumptions in sync.

Open the two‑home comparison →

How to compare two homes

Enter the purchase price, down payment and mortgage details for House A and House B.
Set each home’s property tax, HOA/condo fees, maintenance, insurance and utilities.
Add any initial home improvement or renovation cost you’d spend up front on each house.
Choose how many years you plan to stay — the verdict, chart and breakdown update instantly.

What the two‑home comparison includes

Mortgage principal & interest, PMI and term for each home
Property tax, homeowner’s insurance, HOA / condo fees
Maintenance, renovation and one‑time initial home improvement costs
Home‑price appreciation and extra monthly utilities
Buying and selling closing costs
Opportunity cost of the cash tied up in each home
Average all‑in monthly cost for each house, and the total over your time horizon

Frequently asked questions

How do I compare buying two houses?

Put both homes’ numbers into the side‑by‑side calculator above. It computes each house’s total and average monthly cost of ownership using the same methodology, then tells you which home costs less over the period you plan to stay.

Which is cheaper: a more expensive house with low fees, or a cheaper condo with high HOA?

That is exactly what this tool answers. HOA fees, property tax rate, maintenance and appreciation can outweigh a lower sticker price. Comparing the full all‑in cost — not just the purchase price — is the only reliable way to know.

Does it account for money spent on renovations?

Yes. Each home has an initial home improvement input for up‑front renovation or upgrade spending, which is included in the total cost of ownership and its opportunity cost.

Prefer to compare renting versus buying instead? Use the free rent vs buy calculator.