Is it better to rent or buy a home?

It depends on how long you'll stay, local prices, and your finances. The longer you stay, the more buying tends to win because you build equity instead of paying rent. This tool gives a simple comparison.

What's the break-even point for buying?

It's the number of years it takes for the total cost of buying to become cheaper than renting. Shorter stays often favor renting; longer stays favor buying.

Does this include home equity?

This simplified estimate compares ongoing costs. Buying also builds equity as you pay down your loan and if the home appreciates, which typically strengthens the case for buying over time.

Rent vs Buy Calculator

Does renting or buying fit your plans?

Compare renting with owning over the time you expect to remain in the home, including equity, principal paydown, and appreciation. An educational guide, not financial advice.

Analysis style

Choose how cautious the estimates are

Balanced uses middle-of-the-road assumptions for appreciation, costs, and investment returns.

Current monthly rent$2,200

Home price if you buy$400,000

Down payment$80,000 (20%)

20% or more down, no PMI

Interest rate6.50%

Loan term30 years

Years in the home7 years

Used as the comparison horizon

Property taxes (yearly)$4,400

Homeowners insurance (yearly)$1,800

HOA dues (monthly)$0

Closing costs to buy$12,000

One-time fees to complete the purchase, often 2–4% of the price. An estimate is fine.

Renter's insurance (monthly)$15

A small policy that covers your belongings while renting, usually $10 to $20 a month.

Balanced assumptions

Home appreciation: 3.5%/yr
Rent inflation: 3%/yr
Vacancy: 5%
Maintenance: 1%/yr
CapEx reserve: 0.5%/yr
Property management: 8%
Selling costs: 7%
Renter investment return: 5%/yr

Over 7 years, this scenario favors

Renting

Renting appears stronger based on these assumptions.

Monthly cost to buy (start): $3,039/mo
Monthly cost to rent (start): $2,215/mo
Net advantage of buying: −$153,485
Break-even year: Beyond horizon

Total cost of buying

$347,300

Down + closing + payments

Total cost of renting

$203,549

Rent + renter's insurance

Principal paid down

$30,668

Loan balance reduced

Appreciation gained

$108,912

Estimated value growth

Total homeowner equity

$219,580

Home value − loan balance

Net proceeds if sold

$183,956

After selling costs & payoff

Renter investment value

$193,690

If savings were invested

Future home value

$508,912

In 7 years (estimate)

Home appreciation, rent growth, taxes, insurance, repairs, and investment returns are estimates. Actual results may vary.

This calculator is for education only and is not financial, tax, legal, or investment advice.

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What to read next

Educational information only, not a commitment to lend, a rate quote, or a guarantee of approval. Blueprint Home Loans LLC is licensed in Florida; loan program rules are federal and apply nationally.