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Type the home's price, the rent for a similar place and how long you'll stay. See whether buying or renting leaves you with more money, the year buying pulls ahead, and the rent at which it's a tie.
| Example | Month 1 cost to own | Ahead after the stay | Buying pulls ahead in |
|---|---|---|---|
| $360,000 home, $2,000 rent, stay 7 years (the default) | $2,694 | Rent, by $21,849 | Year 12 |
| Same, but stay 15 years | $2,694 | Buy, by $26,705 | Year 12 |
| Same home, rent is $2,600 a month | $2,694 | Buy, by $43,658 | Year 4 |
| 5% down instead of 20% (PMI), stay 7 years | $3,211 | Rent, by $46,601 | Year 20 |
Hand check, row 1: 20% down on $360,000 is $72,000, plus 3% closing costs of $10,800. The $288,000 loan at 7.4% for 30 years costs $1,994.05 a month (payment = loan × i ÷ (1 − (1 + i)−360), i = 7.4% ÷ 12). Add property tax of $360,000 × 0.89% ÷ 12 = $267, insurance $1,600 ÷ 12 = $133.33 and upkeep of 1% ÷ 12 = $300, and month 1 costs $2,694.38 to own vs $2,015 to rent. After 7 years the home is worth $360,000 × 1.037 = $442,755; after 6% selling costs and the $264,097 still owed you keep $152,092. The renter's $82,800 plus each month's savings, at 5% a year, grow to $173,941.
Buying has one-time costs: closing costs of about 2% to 5% of the price when you buy (Freddie Mac) and agent and other costs when you sell. Early mortgage payments are mostly interest. It takes years of rising value and loan paydown to earn those costs back.
A lower monthly payment doesn't mean buying wins. We give both sides the same cash: the renter invests the down payment and closing costs, and whoever pays less each month invests the difference. Then we compare what each would have at the end.
The 30-year fixed averaged 7.40% for the week of Oct. 15, 2026 (Freddie Mac PMMS). That's a national average for strong credit and 20% down, not your quote. Type the rate a lender gives you.
With a conventional loan and less than 20% down you usually pay private mortgage insurance. You can ask to cancel it when the balance is scheduled to hit 80% of the original value, and it must end automatically at 78% (CFPB). FHA and VA loans have different rules.
U.S. homeowners paid a median $3,211 in property tax on a median $360,600 home in 2024, about 0.89% (Census ACS 2024); your county's rate can be far higher or lower. Homeowners insurance averaged $1,569 a year in 2022 (NAIC via Triple-I), and it's risen since.
Up to $250,000 of gain on selling your main home ($500,000 married filing jointly) is usually tax-free (IRS Topic 701). Mortgage interest only lowers your tax if you itemize, and most people take the 2026 standard deduction of $16,100 single or $32,200 married (Rev. Proc. 2025-32). Savings growth may be taxed.
Facts and math only, not financial or investment advice. Home values, rents and returns are examples you can change, not forecasts. Nothing you type is sent or saved by us (the math runs in your browser; the page link just keeps your numbers). No company pays to be on this page, and there are no partner links.
It depends mostly on how long you'll stay, the price compared with rent, and your mortgage rate. Example: a $360,000 home vs $2,000 rent at 7.4% with 20% down: after 7 years renting comes out $21,849 ahead, and buying pulls ahead in year 12 (with our example growth rates).
Give both sides the same cash. The renter invests the down payment and closing costs; each month whoever pays less invests the difference. At the end, the buyer sells (value minus selling costs minus the loan balance) and keeps any savings. Compare the two totals.
The first year in which buying leaves you with more money than renting, counting the costs to buy and sell. In our default example it's year 12; type your own numbers to see yours.
Property tax, yes. Income taxes, no: the mortgage interest deduction only helps if you itemize, up to $250,000 ($500,000 joint) of home-sale gain is usually tax-free, and savings growth may be taxed.
Estimates, not financial advice. Taxes, insurance, PMI and fees vary by lender, county and city; confirm with your lender, dealer and state agency before acting.
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