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Rent vs. Buy Calculator

“Rent is throwing money away” is a sales pitch. Get the honest math and your personal breakeven year. Free, no sign-up.

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Free · No sign-up · English & Español
3–6 yrstypical breakeven — before it, renting usually wins
6–8%cost of selling a home (agent fees + closing) — why short stays favor renting
~1%of home value per year is a realistic maintenance budget
Equityevery payment builds ownership; rent builds your landlord's

The honest comparison

Buying isn't automatically better — it's better after a breakeven point, usually 3–6 years in. That's because buying and selling carry enormous transaction costs (2–5% to buy, 6–8% to sell), and early mortgage payments are mostly interest. The honest math counts everything: on the buying side, your down payment, closing costs, full PITI, and maintenance (~1% of home value per year) — minus the equity you build and appreciation you gain. On the renting side, your rent and its annual increases.

The real question

It isn't “is buying better?” It's “will I stay long enough for buying to become better?” Stay past your breakeven year and ownership compounds in your favor — equity grows, rent keeps rising, your P&I payment doesn't. Move before it, and renting would have been cheaper. Our calculator finds your personal breakeven using your rent, your market, and honest costs — then shows the year-by-year chart.

Common questions

Is renting really throwing money away?

No — renting buys flexibility and shelter with no maintenance risk or transaction costs. It's the cheaper choice for short stays. Buying wins when you stay past the breakeven.

What's a typical rent vs. buy breakeven?

Usually 3–6 years, but it swings with your market's prices, rents, and appreciation. High-price/low-rent cities push it later; the reverse pulls it earlier. That's why you run your own numbers.

Does the calculator count maintenance and selling costs?

Yes — maintenance, property taxes, insurance, closing costs on both ends, rent increases, appreciation, and the equity you build. That's the whole point: honest math.

What if home prices fall?

Appreciation is an assumption, not a promise. Try the calculator with 0% or negative appreciation and see how your breakeven moves — good stress-testing before a big decision.

Find my breakeven year →

More free tools: VA Loan Calculator · FHA Loan Calculator · Mortgage Payment Calculator · Refinance Calculator · The complete guide: What You Need to Know Before You Owe