Private Rent vs Buy Calculator — No Data Stored
Compare the total cost of renting versus buying a home over any time horizon. Factor in appreciation, investment returns, taxes, and maintenance. All calculations stay private in your browser.
How Rent vs Buy Comparison Works
The rent vs buy decision depends on many factors: how long you plan to stay, local real estate appreciation, your investment alternatives, mortgage rates, property taxes, and maintenance costs. This calculator compares the total wealth impact of both scenarios over your chosen time horizon.
Key Factors in the Comparison
- Renting: Monthly rent (increasing annually), renter's insurance, and the opportunity to invest the down payment
- Buying: Mortgage payments, property taxes, maintenance, insurance, and home equity buildup through appreciation
- Opportunity cost: If renting, the down payment could be invested in stocks/bonds earning a return
- Break-even year: The year when buying becomes cheaper than renting in total cost
Common Rules of Thumb
The "5% rule" suggests multiplying the home value by 5% and dividing by 12 — if your rent is less than that number, renting may be better. The "price-to-rent ratio" divides home price by annual rent; above 20 generally favors renting. However, these rules are simplified — this calculator gives you a more thorough analysis.
Privacy Guarantee
Your financial details — rent amount, home price, income — are processed entirely in your browser. Nothing is transmitted to any server, stored in any database, or shared with any third party.
Tips for Getting Accurate Results
For the most accurate results, use up-to-date numbers from official sources. Double-check your inputs before calculating — small errors in the starting values can lead to significantly different outputs. If you are comparing scenarios, keep all variables the same except the one you are testing. Save or screenshot your results for future reference. This calculator uses standard formulas and is designed to give you a reliable quick estimate, though professional advice may be needed for complex situations.
Rent vs Buy Calculator: 5% Rule vs Price-to-Rent Ratio in 2026
Two shortcuts dominate the rent vs buy conversation, but they answer different questions. The 5% rule (popularized by Ben Felix at PWL Capital) says annual homeownership carrying cost ≈ 5% of home value — 1% property tax, 1% maintenance, 3% opportunity cost. If monthly rent is below that number, rent. The price-to-rent ratio (home price ÷ annual rent) says under 15 favors buying, 15–20 is neutral, over 20 favors renting. Per Harvard JCHS State of the Nation's Housing 2026, the US national P/R ratio hit 21.4 in Q1 2026 — historically favoring rent in most major metros. Run this calculator with YOUR local numbers because Miami's ratio is 27 while Pittsburgh's is 12. Updated 2026-07-28.
Rent vs Buy Calculator: When Buying Wins vs When Renting Wins
Buying wins the calculator's total-wealth comparison in three profiles: (1) you stay 7+ years, (2) local rent inflation exceeds 4%/year, or (3) home appreciation exceeds investment return (rare — S&P 500 has beaten US home appreciation by ~4 points annually since 1980, per Federal Reserve FEDS working paper 2020-079). Renting wins when: you might move within 5 years, mortgage rates exceed 6.5%, or the down payment invested at 7% real return produces more wealth than home equity minus carrying costs. The calculator's break-even year output is the number to watch — if it's beyond your realistic stay horizon, rent.
Costs This Rent vs Buy Calculator Doesn't Include (Add Them Manually)
To keep the tool fast, four real-world costs are excluded — add them to your total-cost buy side before deciding: Closing costs (2–5% of home price at purchase, per CFPB closing-cost guide). Selling costs (5–6% realtor commission + 1–2% transfer taxes when you eventually sell). PMI ($30–70/mo per $100K borrowed if down payment is under 20%). HOA fees ($200–1,000/mo for condos or planned communities). On a $400,000 home held 10 years, these easily add $50,000+ that tilt the calculator's result toward renting. Add them to "Total Buy Costs" mentally, or run the calculator with a higher property_tax_pct to approximate.
Frequently Asked Questions
Is my financial data private?
Yes. All calculations run in your browser using JavaScript. No data — rent amounts, home prices, or any inputs — is sent to any server or stored anywhere. Close this page and everything disappears.
How does the rent vs buy calculation work?
It compares two scenarios over your chosen timeframe: (1) Renting and investing the down payment in the stock market, and (2) Buying with a mortgage and building equity through appreciation. It accounts for property taxes, maintenance, rent increases, and investment returns.
What is the break-even year?
The break-even year is when the net wealth from buying (home equity minus total costs) exceeds the net wealth from renting (investment portfolio minus total rent paid). Before this year, renting is financially better; after it, buying is.
What assumptions does this calculator make?
It assumes a 30-year fixed mortgage, constant annual rates for appreciation/rent increases/investment returns, and does not include closing costs, selling costs (6% realtor fees), or tax benefits of homeownership. Real outcomes will vary.
Is Private Rent vs Buy Calculator — No Data Stored free to use?
Yes, Private Rent vs Buy Calculator — No Data Stored is completely free with no sign-up, no login, and no hidden fees. The tool runs entirely in your browser — your data never leaves your device.
How does this rent vs buy calculator handle closing costs and selling fees?
The tool omits both to keep inputs minimal. In reality, closing costs run 2–5% of home price at purchase (CFPB), and selling costs run 5–6% (realtor commission) plus 1–2% (transfer taxes). On a $400,000 home held 10 years, that is roughly $28,000–$52,000 not reflected in the Total Buy Costs figure. Mentally add these before deciding — they typically shift the break-even year 1–2 years later.
What break-even year does the rent vs buy calculator use for buying?
The break-even year is calculated dynamically per your inputs — the calculator finds the year in which buying net wealth (home equity minus total buy costs) first exceeds renting net wealth (investment portfolio minus total rent paid). Common results: 5–7 years in low-cost markets with strong appreciation, 8–12+ years in high price-to-rent markets like Miami or LA. If the output says "does not break even in N years," that is the calculator telling you renting wins across your entire time horizon.