Is it better to rent or buy?

Buying builds equity and can appreciate, but ties up a large down payment and adds maintenance costs. Renting is flexible and lets you invest your savings. The better choice depends on how long you plan to stay and local price growth.

How many years should I stay in a home for buying to make sense?

A common rule is 5 to 7 years. Buying has high upfront costs, so it usually only beats renting if you stay long enough for appreciation and equity to cover those costs.

Rent vs Buy Calculator

Compare net worth after your chosen number of years.

Renting Details

Monthly Rent ($)

Annual Rent Increase (%)

Investment Return on Savings (%)

What your down payment / savings could earn

Buying Details

Home Price ($)

Down Payment (%)

Mortgage Rate (% p.a.)

Mortgage Term (years)

yrs

Closing Costs ($)

Property Tax (% of price / yr)

Home Insurance (% of price / yr)

Maintenance (% of price / yr)

Annual Home Appreciation (%)

Selling Costs (%)

Comparison Period (years)

yrs

Verdict after 7 years

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Buy Net Worth

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Rent Net Worth

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Difference

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Buy Monthly Cost

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How the comparison works

Buying: your net worth after the period equals the home's value (after appreciation) minus selling costs and the remaining mortgage balance.

Renting: your net worth equals what your down payment and closing costs would have grown to if invested, plus the monthly difference between the buy cost and your rent, invested over time.

The verdict shows which side has more wealth after the period. Buying usually wins with long stays and strong appreciation; renting wins with short stays or slow price growth.

Rent vs Buy FAQ

How long do I need to stay for buying to pay off?▶

Generally 5 to 7 years or more. Buying has large upfront costs (down payment, closing), so short stays usually make renting cheaper. Adjust the comparison period above to test your situation.

What if home prices do not appreciate?▶

Then renting often wins, because your invested savings keep growing while the home ties up money with no price gain. Set appreciation to 0% above to see this scenario.