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Rent vs. Buy Calculator

The question of renting vs. buying doesn't have a simple answer. Depending on your situation, it could come down to finances, family and job goals, your local housing market and more. Our calculator can help you decide.

First, we'll consider whether you can afford to buy a home right now.

Which best describes your access to a down payment?

Considerations when deciding to rent vs. buy

Our rent vs. buy quiz can help you think through:

  • How long do I plan to live in the home?
  • What neighborhoods am I interested in?
  • What are current mortgage rates?
  • Can I afford the monthly mortgage payment for a home in my area of choice?
  • Would I prefer a more predictable monthly housing payment?
  • Do I have enough money for a down payment and closing costs?
  • Can I afford the cost and effort of maintaining a home?
  • How much space do I need for myself, my family or pets?
  • Do I desire to live near certain amenities, such as schools, recreation, shopping or dining?

It's also essential to understand the trajectory of home values in your area. Have they been soaring in recent years? Are more people moving to than out of the area? Is there potential for it to become a hot spot in the future? Generally, if the trendline is increasing, that might suggest better odds for a long-term increase in value.

Often, though, the differences between renting and buying boil down to the upfront and ongoing costs:

  • Upfront costs - To buy a home, you'll need a down payment and closing costs. These are more expensive than the security deposit and any upfront rent payments you'll need to sign a lease. Depending on square footage, you might spend more money furnishing the home you buy, too — especially compared to renting a fully furnished space.
  • Ongoing costs - As a homeowner, you'll pay for homeowners insurance, which is more costly than a renter policy, and property taxes. You'll also be responsible for maintenance and repairs, and potentially costs like an HOA fee or garbage removal service.

Pros and cons of renting

PROS

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    Less expensive overall

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    Flexibility to move

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    No or limited responsibility for maintenance and repairs

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    Potential proximity to more amenities

CONS

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    No equity

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    Potential for rent to rise

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    Potential for relocating on short notice if landlord sells

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    Restrictions on usage, such as decor or pets

Pros and cons of homeownership

PROS

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    Equity growth

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    Ability to customize

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    Fixed monthly payment with a fixed-rate mortgage

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    Potential for tax advantages

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    Potential to leverage, such as by renting the home out or obtaining an equity loan

CONS

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    Less flexibility to move

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    Need to save for a down payment and closing costs

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    Homeowners insurance and property taxes

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    Responsible for maintenance and repairs

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    Potential to lose money if home values fall

Is renting always cheaper? 

Across the top 50 metro areas in the U.S., renting a home is cheaper than paying a mortgage right now, according to Bankrate's 2025 Rent vs. Buy Study.

In some places, renting is a lot cheaper. For example, in the Austin-Round Rock-Georgetown metro area, the average monthly mortgage payment is $3,181, while the average monthly rent is $1,692.

In others, the difference isn't as stark: Renters in the Pittsburgh area, for instance, renters pay an average of $1,452 per month, while the average monthly mortgage payment is $1,601.