Rent vs Buy Calculator 2026

Find your break-even year — true cost of renting vs buying over 5–30 years

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Rent vs Buy Calculator 2026 is a free, browser-based tool that lets you find your break-even year — true cost of renting vs buying over 5–30 years — with zero signup, zero installation. Your data never leaves your browser. Part of 111+ free developer and business tools at wowhow.cloud, built and maintained by a team with 14+ years of hands-on development experience.

TOOLRent vs Buy Calculator 2026

10-Year Verdict

Renting wins(buying never beats renting in 10 yrs)

Buy net worth

$327,314

Rent net worth

$369,293

Buy total cost

$468,094

Rent total cost

$308,846

Home Purchase

Home Price$450,000

$100K$3M

Down Payment

20%

= $90,000

Mortgage Rate6.8%

2%12%

Loan Term

Property Tax1.1%

Home Insurance ($/yr)

HOA ($/mo)

Maintenance1%

Closing Costs3%

= $13,500

Home Appreciation3.5%/yr

Renting

Monthly Rent

Annual Rent Increase3%

Renters Insurance ($/mo)

Security Deposit (months)

Financial Assumptions

Investment Return Rate7%/yr

Return on invested down payment (S&P 500 long-run ~7% real)

Marginal Tax Rate22%

Used to estimate mortgage interest deduction benefit

Compare Over (Years)

Monthly Cost — Year 1

All-in buying cost

$11,500/mo

$2,347/mo mortgage · $360,000 loan

All-in renting cost

$2,215/mo

$2,200/mo rent + $15/mo insurance

Break-Even Analysis

Buying does not break even within your 10-year horizon given these assumptions. Consider extending the comparison period or adjusting appreciation and investment return rates.

Appreciation Sensitivity — Break-Even Year

Appreciation 2.5% (−1%)Never (30yr)

Appreciation 3.5% (base)Never (30yr)

Appreciation 4.5% (+1%)Year 4

Net Worth Comparison (Buy vs Rent + Invest)

Year 1Rent +$10,855

Buy

$109,550

Rent

$120,405

Year 3Rent +$15,158

Buy

$151,142

Rent

$166,300

Year 5Rent +$20,713

Buy

$196,320

Rent

$217,033

Year 10Rent +$41,979

Buy

$327,314

Rent

$369,293

Cumulative Cost Summary

Year	Buy Cost	Rent Cost	Buy Equity	Rent Portfolio
1	$138,003	$30,980	$109,550	$120,405
3	$208,194	$86,540	$151,142	$166,300
5	$280,071	$145,461	$196,320	$217,033
10(horizon)	$468,094	$308,846	$327,314	$369,293

Key Numbers

Loan Amount

$360,000

Down Payment

$90,000 (20%)

Closing Costs

$13,500

Monthly Mortgage

$2,347/mo

Home Value (Yr 10)

$634,769

Net Worth Advantage

-$41,979

Estimates only. All-in buying cost includes mortgage P&I, property tax, insurance, HOA, and maintenance minus estimated mortgage interest tax deduction. Renter net worth assumes monthly savings vs buying are invested at the stated return rate. Actual home appreciation, investment returns, and costs will vary. Consult a licensed financial advisor before making real estate decisions.

About Rent vs Buy Calculator 2026

The rent-vs-buy decision is one of the most consequential financial choices most Americans will make — and it is rarely as simple as "buying is always better." In 2026, with mortgage rates near 6.8% and home prices elevated in most metros, the break-even timeline has stretched to 7-12 years in many markets. This calculator computes the true all-in cost of buying (mortgage, taxes, insurance, HOA, maintenance, closing costs) against the true cost of renting (including the investment growth you would get by keeping your down payment in the market). It produces the break-even year, year-by-year net worth comparison, and a sensitivity analysis showing how a 1% shift in home appreciation changes the outcome.

How It Works

Buying path: The calculator amortizes the mortgage month-by-month, tracking the principal/interest split as the balance falls. Each month it adds property tax (% of current home value), insurance, HOA, maintenance (% of current home value), and subtracts the estimated mortgage interest tax deduction (interest × marginal tax rate). The home value compounds at the annual appreciation rate. Net worth = current home value − remaining mortgage balance.

Renting path: The renter starts by investing the down payment plus closing costs (minus security deposit). Each month, the portfolio earns the investment return rate. Any month where buying costs exceed renting costs, the difference is also invested — this models the renter's "savings advantage" during years when renting is cheaper. Net worth = portfolio value.

Break-even: The first year where buying net worth exceeds renting net worth is reported as the break-even year. Before this year, the renter is wealthier; after it, the buyer is wealthier.

Sensitivity: The appreciation ±1% rows show how sensitive your break-even is to home price growth — a key assumption that varies significantly by market and economic cycle.

Who Is This For

A couple in Austin deciding whether to buy a $550,000 home with 20% down at 6.8% or continue renting at $2,800/month — they want to know if buying makes financial sense for a 7-year horizon.

A San Francisco renter paying $3,200/month who could buy a comparable condo at $900,000 — the high price-to-rent ratio means they want to model whether the 7% stock market return beats 3.5% appreciation over 10 years.

A first-time buyer comparing a 15-year vs 30-year mortgage — the 15-year has higher monthly payments but builds equity faster, potentially pulling the break-even year earlier.

A financial planner showing a client how a 1% difference in home appreciation (3% vs 4%) shifts the break-even year by 2-3 years, illustrating why local market selection matters.

A relocating professional with a 3-5 year assignment in a new city checking whether it makes sense to buy given the short horizon and 3% closing costs that must be recouped.

Scope note: This calculator uses simplified annual maintenance and tax percentages; actual costs vary by property age, local tax assessment practices, and market. The mortgage interest deduction estimate is a rough percentage-based approximation — actual deductibility depends on whether you itemize, the SALT deduction cap ($10,000), and your total mortgage balance. Investment return rates are user-specified and not guaranteed; stock market returns are volatile year-to-year even if the long-run average is ~7%. Home appreciation is modeled as a smooth annual compound; actual prices are cyclical and can decline. Transaction costs of selling a home (5-6% realtor commissions, closing costs) are not included in the buying cost — add these to compare "selling at Year X" scenarios. PMI is not separately modeled. Always consult a licensed real estate agent and financial advisor before making a home purchase decision.

How to Use

Enter your target home price and down payment (percent or dollar amount)

Set the current mortgage rate — defaults to 6.8% (2026 30-year average)

Fill in property tax rate, insurance, HOA fees, and expected maintenance

Enter your current or expected monthly rent and annual rent increase

Set the investment return rate for the opportunity cost of your down payment

Choose how many years to compare (5 / 10 / 15 / 20 / 30)

Read the verdict card — it shows whether buying or renting wins and at what year buying breaks even

Frequently Asked Questions

The break-even year is the point at which your net worth from buying a home (equity + appreciation) exceeds what you would have accumulated by renting and investing your down payment in the stock market. Before that year, renting plus investing is the financially superior strategy. After that year, buying builds more wealth. For most US markets in 2026, break-even falls between Year 5 and Year 12 depending on home price appreciation and local rent levels.

If you buy, your down payment is locked into your home. If you rent instead, that same amount can be invested in diversified assets (e.g., index funds) at the stated investment return rate. The calculator models the renter's portfolio growing each month — first with the initial down payment, then with any monthly cash savings versus the all-in buying cost. The S&P 500 long-run real return after inflation is approximately 7% per year.

The buying cost includes: mortgage principal and interest, property taxes, homeowners insurance, HOA fees, and annual maintenance (default 1% of home value). Upfront costs include the down payment and closing costs (default 3%). The mortgage interest tax deduction is estimated and subtracted based on your marginal tax rate. After the 2017 TCJA, you must itemize deductions to benefit — consult a tax professional.

Yes. The calculator models the home value growing at the annual appreciation rate you specify (default 3.5% — the US long-run average). This increases your equity each year. It also increases property tax and maintenance costs proportionally since these are percentage-based. The national average appreciation rate varies significantly by metro — San Francisco and NYC have historically averaged 4-6% while Sun Belt markets have varied from 2-8%.

If the investment return rate (e.g., 7% stock market) significantly exceeds the home appreciation rate (e.g., 3%), and if all-in buying costs are high relative to rent, investing the down payment can outpace home equity growth over any horizon. This is especially true in high-price metros where price-to-rent ratios are extreme (e.g., price-to-annual-rent above 25). The calculator shows you exactly where your specific numbers land.

As of early 2026, the national average 30-year fixed mortgage rate is approximately 6.8% APR. Rates have remained elevated following the Federal Reserve's 2022-2023 rate hiking cycle. Your actual rate will vary based on your credit score (higher score = lower rate), down payment amount, lender, and loan type. Borrowers with 780+ credit scores and 20% down often qualify for rates 0.25-0.5% below the national average.

This calculator does not separately add PMI (Private Mortgage Insurance, required when down payment < 20%). To model it, add the approximate PMI cost to the HOA field as a temporary amount — typical PMI runs 0.5-1% of the loan amount per year (e.g., $200-$400/month on a $480,000 loan) until your loan-to-value reaches 78%. Use the WOWHOW Mortgage Calculator for a detailed PMI breakdown.

Yes. All calculations happen entirely in your browser. No data is ever sent to any server.