Is it cheaper to rent or buy a house right now?

It depends on how long you'll stay, local rent growth, and home appreciation. As a rule of thumb, if you're staying fewer than 5 years, renting usually wins because closing costs and selling fees haven't been offset. Past 7 years, buying almost always wins on total wealth. This calculator shows your personal break-even year using live mortgage rates.

What is the break-even point on buying vs renting?

The break-even point is the year when equity built (plus appreciation) exceeds what you would have paid in rent over the same period. For most U.S. markets in 2026 it lands between year 5 and year 8.

Does this calculator use current mortgage rates?

Yes — the interest rate defaults to the latest 30-year fixed rate from Freddie Mac's weekly PMMS survey. You can override it to model rate-lock scenarios.

What costs of homeownership does it include?

Principal & interest, property tax (~1.1%/yr), homeowners insurance (~0.35%/yr), PMI when down payment is under 20%, and 1%/yr for maintenance. It also credits principal paydown and appreciation over your time horizon.

Rent vs Buy Calculator

Personalized break-even analysis using today's live mortgage rate. Adjust the numbers to match your situation.

Example scenario · edit anything below

Pre-filled: $2,200/mo rent vs. a $400,000 home over 7 yrs at 6.55%.

Verdict after 7 yrs

Buying +$18,180

Your numbers

All inputs recalculate instantly.

Current monthly rent

Annual rent growth (%)

Home price

Down payment (%)

Interest rate (%)

Loan term (years)

Home appreciation (% / yr)

How long will you stay? (years)

The verdict after 7 years

Buying wins

Buying comes out ahead by $18,180 over 7 years given these inputs.

Total monthly (PITI + maint.)

$3,284

Cash to close (10% down)

$40,000

Rent paid over 7 yrs

$202,289

Ownership cost over 7 yrs

$275,853

Home equity built

$166,181

Break-even year (approx)

Year 12

Next step

See if you actually qualify for the loan behind these numbers.

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How this works

This calculator estimates PITI (principal, interest, taxes, insurance), plus 1% annual maintenance and 0.6% PMI if you put less than 20% down. Selling costs assume 7% of future value. Not a loan offer or investment advice — always confirm with a licensed Loan Officer.

Related calculators

If buying wins for your break-even, size the actual price with the affordability calculator and confirm your DTI clears the program cap. Play with rate, price, and down-payment scenarios in the payment simulator. Veterans — see how $0-down changes the math in the VA entitlement calculator. Browse all calculators. Plan your monthly payment in the mortgage payment calculator and your cash to close in the closing costs calculator.