Rent vs Buy Calculator
Compare the true long-term financial outcome of renting vs buying, factoring in appreciation, rent increases, and equity.
Rent vs Buy in 2026: The True Comparison
The rent vs buy decision is more nuanced than “which monthly payment is lower.” Owning includes mortgage P&I, property taxes (1-2% annually), insurance (0.5%), and maintenance (1-2%). These total ownership costs often exceed equivalent rents in 2026's high-rate environment by 20-40%. However, renting has no equity building, and rent increases at 4% annually eat into its cost advantage over time.
The key variable is your time horizon. Under 5 years, renting usually wins because closing costs and the interest-heavy early mortgage years eat any appreciation gains. Beyond 7-10 years in an appreciating market, buying almost always produces better financial outcomes due to equity accumulation, a fixed mortgage payment (vs rising rents), and long-term appreciation.
Non-Financial Factors
This calculator measures financial outcomes only. Buying also provides stability, ability to customize your home, protection from eviction, and community belonging. These intangible benefits are real and valuable — particularly for families with school-age children or strong community roots.