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Rent vs Buy Calculator — Is Buying a Home Worth It?

Compare modeled renting and buying costs over one entered horizon, including transaction costs, maintenance, opportunity cost, and terminal home equity.

Quick answer: Renting versus buying depends on mortgage cost, rent growth, taxes, insurance, maintenance, appreciation, selling costs, and how long you stay. Time horizon often drives the answer.

SWReviewed by SwitchWize Research Desk · Last reviewed July 17, 2026
Monthly Mortgage (P&I)
$2,214
Monthly Mortgage (P&I)
$2,214
Down Payment Required
$90,000
Loan Amount
$360,000
Initial Monthly Ownership Cash Cost
$3,239
Net cost over your selected horizon
Estimated Home Value at Horizon
$572,526
Mortgage Balance at Horizon
$324,065
Estimated Selling Cost
$34,352
Net Home Equity After Selling Cost
$214,109
Buyer Closing Costs
$11,250
Property Tax Over Horizon
$42,009
Maintenance Over Horizon
$35,007
Rent Paid Over Horizon
$227,471
Foregone Growth on Upfront Cash
$31,988
Net Cost to Buy Over Horizon
$198,941
Net Cost to Rent Over Horizon
$227,471
Diagnostic

Over the selected horizon, the modeled buy advantage is $28,530; a negative value favors renting.

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How home prices have moved

U.S. home prices are up 1.1% over the past year, per the Case-Shiller national index.

FRED Case-Shiller U.S. National Home Price Index (CSUSHPINSA). Historical data, not a forecast.

What to do next

Compare Mortgage Rates

Your action plan
  1. 1

    Compare the leading option against your current setup

    Compare rent with homeownership over an entered horizon using insurance, maintenance, transaction costs, opportunity cost, and terminal equity.

  2. 2

    Compare the result against current market-rate options

    Assumptions change the answer, especially when rates, taxes, or timing matter.

  3. 3

    Save the result to Money Map or use the linked next action

    Turn the result into a prioritized action instead of treating it as a one-off number.

Compare Mortgage Rates

This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

Calculator action path

Turn this result into a decision

Every SwitchWize calculator connects to a product comparison, rate context, guidance, alerts, and Money Map.

Rate authority hub
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Rate Trend
Track mortgage ratesUse market context before you decide when to act.
Guide
First-Time Homeowner Programs: Grants, Down Payment Help, and Tax CreditsFirst-time homebuyer programs offer down payment grants, forgivable loans, reduced mortgage rates, and tax credits. Here's what's available federally and how to find state programs.
Money Map
Map this $2,214/yr opportunitySave this opportunity and see how it fits your broader money plan.
Alert
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About mortgage rates

Mortgage rates depend on loan type (30-yr fixed, 15-yr fixed, ARM, FHA, VA, jumbo), your credit score, down payment, points paid, loan amount, property state, and whether you're purchasing or refinancing. The calculator above uses a representative market rate for payment estimates — your actual rate will vary.

For a personalized rate comparison, use the tool below to see lenders ranked by APR, loan type, and your profile.

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Frequently Asked Questions

Everything you need to know.

When does buying beat renting financially?
There is no universal year. Change the horizon and local assumptions, and compare the signed result. The model intentionally does not invest every monthly renter-versus-buyer cash-flow difference.
What costs do people forget when buying a home?
Closing costs (2–5% of purchase price), property taxes (0.5–2.5% annually), homeowners insurance ($1,000–$3,000/year), maintenance (budget 1% of home value annually), HOA fees, and the opportunity cost of the down payment invested elsewhere.
Is the Rent vs Buy Calculator — Is Buying a Home Worth It? free to use?
Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.
Does using the Rent vs Buy Calculator — Is Buying a Home Worth It? affect my credit score?
No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.
Are the results personalized financial advice?
No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.
What should I do after seeing the result?
Use the recommendation module on this page to compare mortgage rates, or run Money Map to compare this home & mortgage decision with your other opportunities.
How does SwitchWize choose related offers?
Related offers are matched by the calculator surface (mortgage) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.
How fresh are the rates and offers shown?
Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.
Where can I see the ranking methodology?
The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.
Can Money Map use this result?
Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

The result depends on how long you stay and the assumptions entered for rent growth, appreciation, returns, insurance, maintenance, and selling costs. It is a scenario comparison, not a forecast.

How to Use It

  1. 1Enter the purchase, financing, and rent assumptions
  2. 2Add insurance, maintenance, buyer closing cost, and selling cost
  3. 3Choose one comparison horizon and alternative return
  4. 4Review terminal equity, net cost, and the signed buy-versus-rent difference
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