Is it cheaper to rent or buy?
There is no universal answer — it depends on prices, rates, how long you stay, and what you would do with the money you do not tie up in a house. This calculator compares the two paths fairly by tracking net worth. The buyer builds home equity but pays a mortgage, taxes, insurance, upkeep and transaction fees. The renter invests the down payment and any monthly savings instead. Whoever ends the period with more wealth "wins".
Why time horizon matters
Buying carries large upfront and selling costs, so it usually needs several years for home equity and appreciation to overcome them — the classic "break-even horizon". Stay only a couple of years and renting often wins; stay a long time and buying tends to pull ahead. Adjust the years-you-will-stay field to find the tipping point for your numbers.
Frequently asked questions
How is this comparison kept fair?
Each month both scenarios spend the same total: whichever option is cheaper that month, the difference is invested at your chosen investment return. The renter also invests the down payment and closing costs the buyer would have spent upfront. At the end we compare total net worth — the buyer's home equity plus investments versus the renter's investment portfolio.
What is the 'buy+sell cost'?
It bundles the one-time costs of purchasing and later selling a home — closing costs, agent commissions and fees — as a percentage of the price. The calculator splits it between the purchase and the eventual sale. These costs are a big reason buying rarely pays off over very short stays.
Does this account for the tax benefits of owning?
It focuses on cash costs, equity and investment growth rather than mortgage-interest deductions, which many households no longer itemize for. Treat the result as a strong directional estimate; your own taxes, rent and market may shift the exact break-even point.