Should you rent or buy?

Compare the monthly cost of buying a home against renting — then see the total cost of each over the years you plan to stay, including equity you build.

Buying

Home price

Down payment

20% of the home price

Mortgage rate

Loan term

Years you plan to stay

Renting

Current monthly rent

Annual rent growth

Home appreciation / year

Long-run US average is roughly 3–4% per year before inflation adjustments.

Ownership cost assumptions

Property tax / year

Of home price

Insurance / year

Of home price

Maintenance / year

Of home price

Buying wins by

over 7 years, after equity

—

Monthly cost to buy$0

Monthly rent (year 1)$0

Net cost of buying$0

Total rent paid$0

Home equity built$0

Loan amount

Monthly P&I

Closing costs (2%)

Method: buying cost = down payment + 2% closing costs + monthly costs (P&I, tax, insurance, maintenance) over your horizon, minus home equity at the end (appreciated value minus remaining loan). Renting cost = rent growing yearly. Simplified estimate — it excludes tax deductions, HOA dues, selling costs, and investment returns on the down payment. Educational only, not financial advice.