The decision to rent or buy a home is one of the most significant financial choices you will make. Buying builds equity over time and lets you benefit from home appreciation, but it also comes with ongoing costs like property taxes, insurance, maintenance, and mortgage interest. Renting offers flexibility and lower upfront costs, but your monthly payments build no equity.

A key factor is your time horizon. Buying typically becomes more advantageous the longer you stay in the home, because appreciation compounds and your fixed mortgage payment becomes relatively cheaper as rents rise. If you plan to move within a few years, the closing costs and transaction fees of buying may outweigh the benefits.

This calculator uses a 30-year fixed mortgage and estimates property taxes at 1.2% of the home value, insurance at 0.5%, and maintenance at 1% per year. The buying cost is offset by home appreciation, giving you a net cost comparison against the cumulative rent paid over the same period. Adjust the inputs to match your local market conditions for the most accurate result.