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Rent vs. Buy Calculator

Should you buy or keep renting? Run the real math.

Enter your rent, the home you'd buy, and how long you plan to stay. We compare true total cost — including maintenance, taxes, appreciation, and the opportunity cost of your down payment.

Buy

wins over 7 years

Breakeven: year 2

Renting

Buying

Time & alternatives

Over 7 years

Total rent

$202,289

Net buy cost

$176,565

Home value at sale

$534,357

Equity at sale

$159,119

Monthly P&I

$2,452

Monthly total

$3,303

Freedom Coach™

Buying wins by $25,724 over 7 years.

Buying pays off starting year 2.

  • Monthly ownership is ~$3,303 — confirm it fits your budget.
  • Get pre-approved before shopping.

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Save rent-vs-buy scenarios for different cities and hold periods to make relocation decisions with confidence.

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Frequently asked questions

Is renting throwing money away?

No. Renting buys flexibility, predictable housing costs, and freedom from maintenance. Whether it's smart depends on your hold period, local price-to-rent ratio, and what you'd do with the down payment.

What's a good price-to-rent ratio?

Under 15 favors buying, 15–20 is a toss-up, over 21 favors renting. Divide the home price by 12× monthly rent for the ratio.

Why does the hold period matter so much?

Buying has big upfront costs (down payment, closing, agent fees at sale — usually 8–10% combined). It takes years of appreciation and principal paydown to offset them.

What return should I use for opportunity cost?

6–7% is a reasonable long-term real return for a diversified stock portfolio. Lower it if you'd hold cash or bonds instead.

Does this account for tax deductions?

This tool uses conservative pre-tax cash flows. Post-2018 tax reform, only about 10% of homeowners itemize — for most households, the mortgage interest deduction moves the needle less than people think.

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