Rent vs. Buy Calculator

Loan term 30 years · property tax 1.0%/yr of price (national average effective rate) · home insurance 0.75%/yr of price · maintenance 1.0%/yr of price · home appreciation 3.5%/yr · rent increase 3%/yr · investment return 7%/yr on money not spent on housing · closing costs 3% · selling costs 7%. If your down payment is under 20%, PMI of 0.75%/yr of the loan is added and drops off once the balance reaches 78% of the purchase price. Property tax, insurance, and maintenance costs are assumed to grow 3%/yr; in practice, insurance premiums have been rising faster than general inflation in many areas, so this may understate future insurance cost. All figures are national averages/industry rules of thumb as of 2026 and will vary by location — actual property tax rates, insurance premiums, and maintenance costs depend heavily on your specific address, home age, and coverage choices. The tables show your selected year (highlighted) alongside years 5, 10, and 20, so you can see how buying starts out behind and catches up as rent keeps rising while your principal and interest stay fixed. "Wealth built if you buy" reflects home equity after selling costs plus any invested savings; "wealth built if you rent" reflects your down payment and closing costs invested from day one, plus any ongoing money invested rather than spent on housing. HOA and utilities are not included in this simplified version.