Rent vs Buy Calculator — United States

It depends on your holding period, local price-to-rent ratio, mortgage rate, and appreciation. Buying tends to win over longer holds (7+ years) because you build equity and gain mortgage-interest and property-tax deductions, but closing costs and ~6% selling costs mean short holds often favor renting. This tool compares net cost after equity.

Property tax, PMI (if under 20% down), homeowners insurance, HOA dues, maintenance (budget ~1% of value per year), 2-5% in closing costs at purchase, and ~6% in agent commissions plus transfer taxes at sale. These make the true cost of owning much higher than the mortgage payment alone.

The break-even horizon is commonly 3 to 7 years depending on the metro. In expensive coastal markets with high price-to-rent ratios it can be longer; in affordable markets it can be under 3 years. Enter your numbers above to find your personal break-even point.

They can. Mortgage interest and property taxes may be deductible if you itemize, but the high standard deduction means many owners no longer itemize. Factor in only the deductions you would actually claim above the standard deduction, or the buying case will look artificially cheap.