Should I rent or buy a house?
There's no universal answer — it depends on your numbers and how long you'll stay. Here's how to think through the trade-offs.
Renting vs. buying a home is one of the biggest money decisions most people make. The right choice depends less on rules of thumb and more on a handful of factors you can actually estimate. Our rent vs. buy calculator runs the math for your situation; this guide explains what drives the result.
How the Rent vs. Buy Calculator Works
Upfront costs
Buying requires a down payment plus closing costs — typically a few percent of the home price for things like lender fees, title insurance and inspections. That money leaves your pocket on day one. Renting usually requires only a security deposit and the first month's rent.
Monthly costs
A mortgage payment is only part of what owners pay. Property taxes, homeowner's insurance, maintenance and possibly HOA dues add to the monthly total, and many of these grow as the home's value grows. Renters pay rent (which usually rises over time) and renter's insurance — simpler, but with no equity building.
How long you expect to stay
This is often the deciding factor. Buying has large one-time costs at the start and when you sell, so those costs need time to be offset by equity growth and avoided rent. The shorter your stay, the more likely renting comes out ahead; the longer you stay, the more buying tends to catch up and pass renting.
Maintenance and surprises
Owners pay for every repair, from a leaky faucet to a new roof. A common planning approach is to budget a percentage of the home's value each year — the calculator lets you set this assumption yourself.
The opportunity cost of the down payment
Money used for a down payment could instead be invested. A renter who keeps that money in the market and invests the difference each month can build meaningful wealth too — which is why "renting is throwing money away" is too simple. The fair comparison asks: which path leaves you with more net worth at the end?
Why assumptions change the result
Small changes in home price growth, rent increases, investment returns or interest rates can flip the answer. That's why the calculator shows every assumption and updates instantly — try a pessimistic and an optimistic version of your numbers and see how much the verdict moves. Results are estimates, not predictions or financial advice.