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Buy vs Rent Calculator (2026)
Single source of truth: net cost includes equity, appreciation, opportunity cost, PMI, and tax shield.
The most rigorous Buy-vs-Rent comparison on the web — factors in mortgage amortization, opportunity cost of your down payment, property tax + maintenance + PMI, tax-shield value, selling friction, and rent inflation. Recommendation is mathematically derived, not a heuristic.
Buying scenario
20.0% down
Renting scenario
Your situation
Opportunity cost — what your down payment could earn if invested instead
Drives the mortgage-interest + SALT tax shield
Recommendation
Buying wins
$11,998 cheaper over 7 years (9.2% margin)
Buying — net cost at year 7
$118,423
Total spent $265,581 − equity $147,158
Renting — net cost at year 7
$130,421
Total rent $183,899 − opp. gain $554,628
Break-even year
Year 6
Buying becomes cheaper at year 6
Monthly cost comparison
$2,557 vs $2,000
Buying $557/mo more
Net cost over time — buy vs rent
Net cost = total cash out − equity built (buy) or − investment gains (rent). Lower line wins at each year.
Analysis & insights
Buying wins over your 7-year horizon — net cost of $118,423 vs $130,421. That's a $11,998 (9.2%) advantage. The buy side benefits from $280,000 in forced principal paydown + $80,456 in appreciation — both wealth-building forms renting doesn't deliver. Buying overtook renting at year 6; your planned 7 years extends well past that.
Buying wins
Buying comes out $11,998 ahead over 7 years (9.2% margin). Solid but moderate.
Risk & benchmark gauge
Current band
Solid
9.2% margin of advantage
Industry benchmarks
- Buy — net cost at year 7$118,423
- Rent — net cost at year 7$130,421
- Break-even yearYear 6
- Monthly buy cost (PITI + maint + PMI)$2,557
- Starting monthly rent$2,000
- Equity built at exit$147,158
- Appreciation gain at exit$80,456
- Opportunity gain on down payment$554,628
Key insights
Break-even at year 6
Buying overtakes renting at year 6. You plan to stay 7 years — 1 years past the break-even. That's where the buy advantage builds.
Scenario analysis
At year 3
Renting wins by $19,451
Short-term — selling friction (6-8% in agent + closing) usually still hurts buyers here.
At year 5
Renting wins by $4,858
Typical "stay" threshold the industry quotes — but verify it for YOUR scenario.
Your stay (year 7)
Buying wins by $11,998
Based on your planned 7-year tenure — this is the headline recommendation above.
At year 10
Buying wins by $41,211
Long-tenure homeowner — compounding equity + appreciation typically dominates.
At year 30 (mortgage paid)
Buying wins by $439,902
Mortgage fully amortized; renter has paid 30 years of inflating rent.
Recommended actions(2)
Proceed with the home purchase
High priorityNet savings of $11,998 over 7 years. Confirm your geographic + career stability for that period before signing.
Impact: Skip the purchase and you forfeit $11,998 of the buy advantage.
Stress-test the assumptions
Medium priorityChange appreciation ±2 points, investment return ±2 points, and stay duration ±3 years. If the recommendation flips on small changes, treat it as marginal regardless of the headline label.
Impact: Reveals how sensitive your answer is to assumptions you can't fully control.
Find the Best Mortgage Rate
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This tool is for educational purposes only and does not constitute financial, tax, or investment advice. Consult a qualified financial professional for advice specific to your situation.
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