Rent vs. buy calculator
Pre-filled with a current 30-year fixed rate from FRED. Enter a home price and rent to see the break-even year, a 5 and 10 year comparison, and a cumulative net-cost chart.
Inputs
Default mortgage rate sourced from FRED MORTGAGE30US, as of 2026-04-23.
The verdict
Based on these inputs, buying typically becomes cheaper than renting after 7 years. Because you plan to stay 7 years, buying typically builds more wealth over this horizon. Actual outcomes depend on rate moves, market appreciation, and maintenance surprises.
Cumulative net cost: buy vs. rent
Net cost = cumulative outflows minus equity gained (buy) or investment pool grown (rent). Crossover marks the break-even year.
Monthly cost breakdown (buy side)
- Mortgage P&I$1,966
- Property tax$333
- Insurance$125
- Maintenance$333
- Total monthly$2,758
Frequently asked questions
How does a rent-vs-buy calculator work?
It compares the cumulative cost of buying (mortgage interest, taxes, insurance, maintenance, closing costs minus equity gained) against the cumulative cost of renting (rent payments minus returns on the down-payment pool invested). The break-even point is the year buying becomes cheaper.
What assumptions does this calculator use?
Defaults: 20% down, 30-year fixed mortgage at the current FRED rate, 1% annual maintenance, 3% home appreciation, 3% rent growth, 5% market return. All are editable. Local property tax rate and median rent are populated from Census ACS and HUD when a county is selected.
Does it include selling costs?
A 3% closing cost estimate is added to the buy side. Selling costs (typically 6 to 9%) are not baked in to keep the horizon comparison simple; account for them separately if you expect to sell soon after buying.
Why do the defaults matter?
Rent-vs-buy outcomes are highly sensitive to the mortgage rate, home appreciation, and how long you stay. A 1 percentage point move in rates, or a 1 point move in appreciation, can shift the break-even year by multiple years.