SmartFinance
Sign in

Rent vs Buy Calculator

Best for renters deciding whether to buy their next home

Already own a home? Use the Housing Decision Calculator.

Loading your saved presets...

Leftover cash after down payment and closing costs will be invested: $0.00
Down payment amount: $90,000.00

Should You Rent or Buy?

The rent vs buy decision depends on many factors beyond just monthly payments. Our calculator accounts for hidden costs that most people forget: property taxes, maintenance, HOA fees, insurance, PMI, and the opportunity cost of your down payment.

Already own a home and deciding whether to keep, sell, or rent it out? Use the Housing Decision Calculator to compare those scenarios.

The True Cost of Homeownership

Beyond your mortgage payment, expect to pay 1-2% of your home's value annually in maintenance, plus property taxes (varies by state), homeowners insurance, and potentially HOA fees. These costs can add $500-$1,500+ per month to your housing expenses.

When Renting Makes More Sense

  • Planning to move within 5 years - Transaction costs often outweigh equity gains
  • Uncertain job situation - Flexibility has value
  • High price-to-rent ratio in your area - Some markets favor renters
  • You can invest the down payment - Stock market returns may beat home appreciation

When Buying Makes More Sense

  • Planning to stay 7+ years - Time to build equity and recover transaction costs
  • Rent is increasing rapidly - Lock in your housing cost with a fixed mortgage
  • You want to build wealth - Forced savings through mortgage payments
  • Tax benefits are valuable - Mortgage interest deduction (if you itemize)

Related Resources