Should I Buy or Rent? Explained

A quick, honest framework you can use before talking to a lender or agent.

The Real Question

It’s not just rent vs. mortgage. It’s a comparison of total wealth outcomes:

  • Buy: Mortgage + taxes + insurance + maintenance + PMI minus equity, appreciation, and tax benefits.
  • Rent: Rent + insurance, while investing the down payment and closing costs.

Use the calculator to see month-by-month outcomes and the break-even point.

Key Inputs That Move the Needle

  • Down payment % — lower down may introduce PMI; higher down reduces interest costs.
  • Interest rate — smaller changes can shift the break-even by years.
  • Property taxes & maintenance — location and home type matter.
  • Rent growth vs. home appreciation — long-term expectations are crucial.
  • Investment return — what your capital could earn if you rent.

A Simple Decision Framework

  1. Enter realistic numbers in the calculator.
  2. Look at the break-even month and final comparison.
  3. Run a few what-if scenarios (rates, down payment, rent growth).
  4. Layer in personal factors: job stability, time horizon, school districts, etc.

Related Resources

⚠️ For educational purposes only. Not financial, tax, or legal advice. Consult professionals before making decisions.