Buying usually beats renting only if you stay long enough. With rates around 7.4% (Freddie Mac, mid-October 2026), buying a $350,000 home typically takes about 7–8 years to come out cheaper than renting a similar place for $2,200 a month. Where rents are higher, it happens sooner. Run your own numbers below.
Rent vs. buy calculator
Compare what renting and buying really cost over the years you plan to stay.
Buying includes your down payment, 3% closing costs, mortgage payments, 1.5% a year for taxes and insurance, 1% for maintenance, PMI below 20% down, 6% selling costs and the return your cash could have earned, minus what you get back when you sell.
Estimates for education only. Rates and costs vary; confirm with a licensed lender.
Why time matters so much
Buying has big one-time costs: closing costs of about 2–5% when you buy and roughly 6% when you sell. Early mortgage payments are mostly interest. If you sell after 2 or 3 years, those costs usually outweigh the equity you built.
What the calculator counts
- Renting: your rent, rising each year.
- Buying: down payment, closing costs, mortgage payments, property tax, insurance, maintenance and PMI, minus what you get back when you sell.
- Opportunity cost: the return your down payment could have earned if you kept renting and invested it.
This calculator assumes a home price. Module 2 of the HomeLooker course helps you find yours first, with affordability, debt-to-income and rent-vs-buy calculators that work together.
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When renting is the smarter move
- You might move for work in the next few years.
- You don't have an emergency fund on top of your down payment.
- Homes in your area cost far more than renting a similar place.
When buying makes more sense
- You plan to stay 7 years or longer.
- Your total monthly housing cost would be close to your rent.
- You want stable payments: a fixed-rate mortgage locks in your principal and interest.
Educational content only, not financial advice. Calculators start at the Freddie Mac weekly average (7.4% as of October 15, 2026); worked examples use mid-October 2026 rates. Confirm current figures with a licensed lender.
Down payments, the real monthly cost, inspections and closing day, explained simply. You’ll also get occasional emails about buying a home and the course. No spam, unsubscribe anytime.