Real Estate
Rent vs Buy Calculator
Buying looks cheaper than rent on paper, but factor in maintenance, taxes, insurance, opportunity cost of the down payment, and tax benefits to get the real answer.
Buy beats rent by
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- Total rent cost
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- Total buy cost
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- Break-even year
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FAQ
When does buying win? +
Almost always past year 5-7, assuming home appreciates and you stay put. Short stays (under 3 years) usually favor renting due to closing costs and selling fees.
Why include opportunity cost? +
Your down payment could be earning 5-8% in index funds. Real comparison must include what you give up.