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, local housing market and more. Our calculator can help you decide.
Considerations when deciding to rent vs. buy
Our rent vs. buy quiz can help you think through questions such as:
- 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?
Often, 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
- Less expensive overall
- Flexibility to move
- No or limited responsibility for maintenance and repairs
- Potential proximity to more amenities
Cons
- No equity
- Potential for rent to rise
- Potential for relocating on short notice if landlord sells
- Restrictions on usage, such as decor or pets
Pros and cons of homeownership
Pros
- Equity growth
- Ability to customize
- Fixed monthly payment with a fixed-rate mortgage
- Potential for tax advantages
- Potential to leverage, such as by renting the home out or obtaining an equity loan
Cons
- Less flexibility to move
- Need to save for a down payment and closing costs
- Homeowners insurance and property taxes
- Responsible for maintenance and repairs
- Potential to lose money if home values fall
Is renting always cheaper?
It depends on where you live, but in many areas today, it's cheaper to rent than buy.
Take Seattle, for example. As of January 2025, the median rent there is $2,093, according to Zillow. A mortgage payment at the city's median home price ($851,513) and today's mortgage rate (7.11 percent) totals $4,583. That assumes you have a 20 percent down payment, too — or more than $170,000.
It's not cheaper to rent everywhere, though. In Cincinnati, the median rent ($1,397) costs more than the monthly mortgage payment on a median-priced home at today's rate: $1,259.