{"tool":{"slug":"rent-vs-buy","name":"Rent vs buy calculator","version":"2026-08-22","canonicalUrl":"https://carlo.finance/tools/rent-vs-buy","jsonUrl":"https://carlo.finance/tools/rent-vs-buy.json","pageUrl":"https://carlo.finance/tools/rent-vs-buy","parameters":[{"key":"price","label":"Home price","unit":"usd","min":0,"max":100000000,"default":400000,"sourceId":null,"help":"The purchase price of the house you would buy. The default is an example, not a statistic."},{"key":"rent","label":"Rent today","unit":"usd-per-month","min":0,"max":1000000,"default":2000,"sourceId":null,"help":"What the comparable rental costs you each month right now. The default is an example, not a statistic. Compare like with like: the rent for a place you would actually live in instead of the house."},{"key":"down","label":"Down payment","unit":"usd","min":0,"max":100000000,"default":80000,"sourceId":null,"help":"Cash toward the price. Under 20% of the price adds private mortgage insurance. This money, plus the closing costs, is what the renter invests instead."},{"key":"years","label":"Years you look ahead","unit":"years","min":1,"max":40,"default":30,"sourceId":null,"integer":true,"help":"How far ahead the comparison runs. Every year end prices a sale on that date, so this is a window, not a forecast of how long you stay. The break-even is only ever reported inside it."},{"key":"rate","label":"Mortgage rate","unit":"percent","min":0,"max":30,"default":6.65,"sourceId":"pmms","help":"Annual interest rate on the loan."},{"key":"term","label":"Loan term","unit":"years","min":1,"max":40,"default":30,"sourceId":null,"integer":true,"help":"Years to repay. 30 and 15 are the common choices. Past the last payment the owner's monthly cost drops to taxes, insurance, maintenance, and dues."},{"key":"taxRate","label":"Property tax rate","unit":"percent","min":0,"max":10,"default":0.888,"sourceId":"property-tax","help":"Annual property tax as a percent of the home's value. Charged on the appreciated value each year, not the purchase price."},{"key":"insurance","label":"Homeowners insurance","unit":"usd","min":0,"max":1000000,"default":1600,"sourceId":"insurance","help":"Annual premium, held in today's dollars for the whole run."},{"key":"maintRate","label":"Maintenance and repairs","unit":"percent","min":0,"max":10,"default":1,"sourceId":null,"help":"Annual upkeep as a percent of the home's value: roof, furnace, paint, the water heater that fails in year nine. No official statistic publishes this rate, so it is your input. The 1% default is a common rule of thumb, not a measurement; a new build runs lower and an old house runs higher."},{"key":"hoa","label":"HOA dues","unit":"usd-per-month","min":0,"max":100000,"default":0,"sourceId":null,"help":"Monthly association dues, if any. Held in today's dollars for the whole run."},{"key":"pmiRate","label":"PMI rate","unit":"percent","min":0,"max":5,"default":0.6,"sourceId":"pmi","help":"Annual private mortgage insurance as a percent of the loan. Charged only while the down payment is under 20% of the price, and modeled to end when the scheduled balance reaches 78% of the price. Default is the middle of Freddie Mac's published range."},{"key":"closingRate","label":"Closing costs to buy","unit":"percent","min":0,"max":20,"default":3,"sourceId":"closing","help":"Percent of the price paid at the closing table on top of the down payment. Freddie Mac puts the usual range at 2% to 5%; the default sits in the middle."},{"key":"sellRate","label":"Selling cost at exit","unit":"percent","min":0,"max":20,"default":6,"sourceId":null,"help":"Percent of the sale price that never reaches you: agent commissions, transfer taxes, title, and the repairs a buyer asks for. Commissions are negotiable and vary by market, so this is your input. The 6% default is an example, not a published figure."},{"key":"appreciation","label":"Home appreciation","unit":"percent","min":-10,"max":20,"default":3,"sourceId":null,"help":"How much the house gains each year, before selling costs. This is an assumption you choose, not a forecast; the default is an example to replace with your own. Negative values are allowed."},{"key":"rentGrowth","label":"Rent growth","unit":"percent","min":-10,"max":20,"default":3,"sourceId":null,"help":"How much the rent rises each year, applied once at each anniversary. An assumption you choose, not a forecast."},{"key":"investReturn","label":"Return on money not spent","unit":"percent","min":-10,"max":20,"default":5,"sourceId":null,"help":"What the renter earns on the down payment, the closing costs, and any month owning would have cost more. An assumption you choose, not a forecast, and the one most rent-versus-buy calculators leave out entirely."}]},"inputs":{"price":400000,"rent":2000,"down":80000,"years":30,"rate":6.65,"term":30,"taxRate":0.888,"insurance":1600,"maintRate":1,"hoa":0,"pmiRate":0.6,"closingRate":3,"sellRate":6,"appreciation":3,"rentGrowth":3,"investReturn":5},"result":{"loanAmount":320000,"monthlyPI":2054.2875905476612,"pmiApplies":false,"pmiMonthly":0,"pmiEndsMonth":null,"months":360,"own":{"downPayment":80000,"closingCosts":12000,"upfront":92000,"interest":419543.53259717335,"principal":320000.0000000004,"propertyTax":168987.87658885636,"insurance":48000.00000000016,"pmi":0,"maintenance":190301.66282528787,"hoa":0,"grossOutlay":1238833.072011318,"homeValue":970904.9884758649,"loanBalance":0,"sellingCost":58254.29930855189,"netProceeds":912650.6891673129,"netCost":326182.38284400513},"rent":{"rentPaid":1141809.9769517293,"upfrontInvested":92000,"added":88482.83370858857,"withdrawn":83459.73864899993,"monthsAdding":192,"monthsDrawing":168,"contributed":97023.095059589,"portfolio":587773.4944995913,"opportunityGains":490750.3994400023,"netCost":651059.577511727},"gap":-324877.19466772187,"cheaper":"own","breakEvenMonth":151,"breakEvenYear":13,"crossesBack":false,"monthlyCrossoverMonth":193,"monthOne":{"principalAndInterest":2054.2875905476612,"propertyTax":296,"insurance":133.33333333333334,"pmi":0,"maintenance":333.3333333333333,"hoa":0,"own":2816.954257214328,"rent":2000,"difference":816.9542572143282},"yearly":[{"year":1,"homeValue":412000,"loanBalance":316523.8678271625,"netProceeds":70756.1321728375,"portfolio":106626.13445979742,"ownCost":55047.31891373443,"rentCost":19177.316626774482,"gap":35870.00228695995},{"year":2,"homeValue":424360,"loanBalance":312809.3954295707,"netProceeds":86089.00457042927,"portfolio":121478.92725456775,"ownCost":73744.4576027146,"rentCost":38354.534918576115,"gap":35389.92268413848},{"year":3,"homeValue":437090.8,"loanBalance":308840.2410630355,"netProceeds":102025.11093696445,"portfolio":136554.57184941904,"ownCost":92071.71912275135,"rentCost":57542.2582102968,"gap":34529.46091245455},{"year":4,"homeValue":450203.52400000003,"loanBalance":304598.9425153334,"netProceeds":118592.37004466658,"portfolio":151848.6171991657,"ownCost":110008.18540562119,"rentCost":76751.93825112213,"gap":33256.247154499055},{"year":5,"homeValue":463709.62972,"loanBalance":300066.84028156655,"netProceeds":135820.21165523346,"portfolio":167355.92189730698,"ownCost":127531.63741474622,"rentCost":95995.92717267282,"gap":31535.7102420734},{"year":6,"homeValue":477620.91861160006,"loanBalance":295223.99547205796,"netProceeds":153739.6680228461,"portfolio":183070.60562368977,"ownCost":144618.46994281915,"rentCost":115287.5323419756,"gap":29330.93760084355},{"year":7,"homeValue":491949.54616994807,"loanBalance":290049.102091621,"netProceeds":172383.47130813013,"portfolio":198985.99774352618,"ownCost":161243.6006874941,"rentCost":134641.07425209798,"gap":26602.52643539611},{"year":8,"homeValue":506708.03255504655,"loanBalance":284519.39330427564,"netProceeds":191786.1572974681,"portfolio":215094.58290270303,"ownCost":177380.37321641663,"rentCost":154071.94761118165,"gap":23308.42560523498},{"year":9,"homeValue":521909.273531698,"loanBalance":278610.5412710259,"netProceeds":211984.1758487702,"portfolio":231387.9434561878,"ownCost":193000.45340632583,"rentCost":173596.685798908,"gap":19403.76760741783},{"year":10,"homeValue":537566.5517376489,"loanBalance":272296.5501200378,"netProceeds":233016.00851335214,"portfolio":247856.6985577862,"ownCost":208073.7189125943,"rentCost":193233.02886815966,"gap":14840.690044434654},{"year":11,"homeValue":553693.5482897784,"loanBalance":265549.641578341,"netProceeds":254922.29381405067,"portfolio":264490.4397305174,"ownCost":222568.14119527448,"rentCost":212999.99527880724,"gap":9568.145916467241},{"year":12,"homeValue":570304.3547384717,"loanBalance":258340.13276189333,"netProceeds":277745.9606922701,"portfolio":281277.66272741946,"ownCost":236449.6595953381,"rentCost":232917.95756018814,"gap":3531.702035149967},{"year":13,"homeValue":587413.4853806259,"loanBalance":250636.30558634887,"netProceeds":301532.37067143945,"portfolio":298205.69548266666,"ownCost":249682.04692020302,"rentCost":253008.72210897505,"gap":-3326.675188772031},{"year":14,"homeValue":605035.8899420447,"loanBalance":242404.2672240044,"netProceeds":326329.4693215176,"portfolio":315260.62194243213,"ownCost":262226.765960683,"rentCost":273295.6133397675,"gap":-11068.847379084502},{"year":15,"homeValue":623186.966640306,"loanBalance":233607.80099300784,"netProceeds":352187.94764887984,"portfolio":332427.20155394374,"ownCost":274042.8163219986,"rentCost":293803.56241693394,"gap":-19760.74609493534},{"year":16,"homeValue":641882.5756395153,"loanBalance":224208.20702281818,"netProceeds":379161.4140783262,"portfolio":349688.78417965194,"ownCost":285086.570909293,"rentCost":314559.2008079665,"gap":-29472.629898673506},{"year":17,"homeValue":661139.0529087008,"loanBalance":214164.1319949287,"netProceeds":407306.57773925003,"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growth","step":1,"gapDelta":-322044.4937613829,"breakEvenDelta":-3,"sentence":"Each point of assumed rent growth takes $322,044 off what owning costs against renting over 30 years, and it moves the break-even from year 13 to year 10."},{"key":"appreciation","label":"Home appreciation","step":1,"gapDelta":-205530.10723279137,"breakEvenDelta":-6,"sentence":"Each point of assumed appreciation takes $205,530 off what owning costs against renting over 30 years, and it moves the break-even from year 13 to year 7."},{"key":"investReturn","label":"Return on money not spent","step":1,"gapDelta":204841.12968480878,"breakEvenDelta":7,"sentence":"Each point of assumed return on the money a renter keeps invested adds $204,841 to what owning costs against renting over 30 years, and it moves the break-even from year 13 to year 20."},{"key":"maintRate","label":"Maintenance","step":0.5,"gapDelta":193771.7167927646,"breakEvenDelta":8,"sentence":"Each 0.5 points of maintenance adds $193,772 to what owning costs against renting over 30 years, and it moves the break-even from year 13 to year 21."},{"key":"rate","label":"Mortgage rate","step":1,"gapDelta":176250.2285740889,"breakEvenDelta":9,"sentence":"Each point on the mortgage rate adds $176,250 to what owning costs against renting over 30 years, and it moves the break-even from year 13 to year 22."},{"key":"sellRate","label":"Selling cost","step":1,"gapDelta":9709.049884758657,"breakEvenDelta":1,"sentence":"Each point of selling cost adds $9,709 to what owning costs against renting over 30 years, and it moves the break-even from year 13 to year 14."}],"sensitivity":{"grid":[{"appreciation":0,"cells":[{"rentGrowth":1,"breakEvenYear":null},{"rentGrowth":2,"breakEvenYear":null},{"rentGrowth":3,"breakEvenYear":30},{"rentGrowth":4,"breakEvenYear":23},{"rentGrowth":5,"breakEvenYear":19}]},{"appreciation":1,"cells":[{"rentGrowth":1,"breakEvenYear":null},{"rentGrowth":2,"breakEvenYear":null},{"rentGrowth":3,"breakEvenYear":27},{"rentGrowth":4,"breakEvenYear":20},{"rentGrowth":5,"breakEvenYear":16}]},{"appreciation":2,"cells":[{"rentGrowth":1,"breakEvenYear":null},{"rentGrowth":2,"breakEvenYear":null},{"rentGrowth":3,"breakEvenYear":22},{"rentGrowth":4,"breakEvenYear":16},{"rentGrowth":5,"breakEvenYear":13}]},{"appreciation":3,"cells":[{"rentGrowth":1,"breakEvenYear":null},{"rentGrowth":2,"breakEvenYear":22},{"rentGrowth":3,"breakEvenYear":13},{"rentGrowth":4,"breakEvenYear":10},{"rentGrowth":5,"breakEvenYear":9}]},{"appreciation":4,"cells":[{"rentGrowth":1,"breakEvenYear":10},{"rentGrowth":2,"breakEvenYear":8},{"rentGrowth":3,"breakEvenYear":7},{"rentGrowth":4,"breakEvenYear":6},{"rentGrowth":5,"breakEvenYear":6}]},{"appreciation":5,"cells":[{"rentGrowth":1,"breakEvenYear":5},{"rentGrowth":2,"breakEvenYear":5},{"rentGrowth":3,"breakEvenYear":5},{"rentGrowth":4,"breakEvenYear":4},{"rentGrowth":5,"breakEvenYear":4}]}],"byHorizon":[{"years":5,"ownCost":127531.63741474622,"rentCost":95995.92717267282,"gap":31535.7102420734},{"years":7,"ownCost":161243.6006874941,"rentCost":134641.07425209798,"gap":26602.52643539611},{"years":10,"ownCost":208073.7189125943,"rentCost":193233.02886815966,"gap":14840.690044434654},{"years":30,"ownCost":326182.38284400513,"rentCost":651059.577511727,"gap":-324877.19466772187}],"byInvestReturn":[{"investReturn":3,"breakEvenYear":8,"gap":-602064.969814688},{"investReturn":4,"breakEvenYear":10,"gap":-481960.8101512224},{"investReturn":5,"breakEvenYear":13,"gap":-324877.19466772187},{"investReturn":6,"breakEvenYear":20,"gap":-120036.06498291309},{"investReturn":7,"breakEvenYear":null,"gap":146358.5026412824}]},"assumptions":[{"key":"price","label":"Home price","value":400000,"unit":"usd","provided":false,"source":null},{"key":"rent","label":"Rent today","value":2000,"unit":"usd-per-month","provided":false,"source":null},{"key":"down","label":"Down payment","value":80000,"unit":"usd","provided":false,"source":null},{"key":"years","label":"Years you look ahead","value":30,"unit":"years","provided":false,"source":null},{"key":"rate","label":"Mortgage rate","value":6.65,"unit":"percent","provided":false,"source":{"id":"pmms","name":"Freddie Mac Primary Mortgage Market Survey","url":"https://www.freddiemac.com/pmms","asOf":"2026-08-20","note":"30-year fixed-rate mortgage average 6.65%; 15-year 5.95%."}},{"key":"term","label":"Loan term","value":30,"unit":"years","provided":false,"source":null},{"key":"taxRate","label":"Property tax rate","value":0.888,"unit":"percent","provided":false,"source":{"id":"property-tax","name":"NAHB Eye On Housing, Property Taxes by State, 2024 (American Community Survey)","url":"https://eyeonhousing.org/2025/11/property-taxes-by-state-2024/","asOf":"2025-11-26","note":"National effective property tax rate $8.88 per $1,000 of home value (0.888%)."}},{"key":"insurance","label":"Homeowners insurance","value":1600,"unit":"usd","provided":false,"source":{"id":"insurance","name":"NAIC, Examining Homeowner Property Insurance Market Dynamics, 2018 to 2024","url":"https://content.naic.org/sites/default/files/mcas-homeowners-property-insurance-market-dynamics-report.pdf","asOf":"2026-07-31","note":"2024 average homeowners premium per policy: $1,600 countrywide."}},{"key":"maintRate","label":"Maintenance and repairs","value":1,"unit":"percent","provided":false,"source":null},{"key":"hoa","label":"HOA dues","value":0,"unit":"usd-per-month","provided":false,"source":null},{"key":"pmiRate","label":"PMI rate","value":0.6,"unit":"percent","provided":false,"source":{"id":"pmi","name":"Freddie Mac, Breaking down PMI","url":"https://myhome.freddiemac.com/buying/breaking-down-pmi","asOf":"2026-08-21","note":"Private mortgage insurance typically costs $30 to $70 per month for every $100,000 borrowed (0.36% to 0.84% of the loan per year). Required on conventional loans with less than 20% down."}},{"key":"closingRate","label":"Closing costs to buy","value":3,"unit":"percent","provided":false,"source":{"id":"closing","name":"Freddie Mac, What are closing costs and how much will I pay?","url":"https://myhome.freddiemac.com/blog/homebuying/what-are-closing-costs-and-how-much-will-i-pay","asOf":"2026-02-26","note":"Closing costs typically run 2% to 5% of the home purchase price, paid in addition to the down payment."}},{"key":"sellRate","label":"Selling cost at exit","value":6,"unit":"percent","provided":false,"source":null},{"key":"appreciation","label":"Home appreciation","value":3,"unit":"percent","provided":false,"source":null},{"key":"rentGrowth","label":"Rent growth","value":3,"unit":"percent","provided":false,"source":null},{"key":"investReturn","label":"Return on money not spent","value":5,"unit":"percent","provided":false,"source":null}],"sources":[{"id":"pmms","name":"Freddie Mac Primary Mortgage Market Survey","url":"https://www.freddiemac.com/pmms","asOf":"2026-08-20","note":"30-year fixed-rate mortgage average 6.65%; 15-year 5.95%."},{"id":"property-tax","name":"NAHB Eye On Housing, Property Taxes by State, 2024 (American Community Survey)","url":"https://eyeonhousing.org/2025/11/property-taxes-by-state-2024/","asOf":"2025-11-26","note":"National effective property tax rate $8.88 per $1,000 of home value (0.888%)."},{"id":"insurance","name":"NAIC, Examining Homeowner Property Insurance Market Dynamics, 2018 to 2024","url":"https://content.naic.org/sites/default/files/mcas-homeowners-property-insurance-market-dynamics-report.pdf","asOf":"2026-07-31","note":"2024 average homeowners premium per policy: $1,600 countrywide."},{"id":"pmi","name":"Freddie Mac, Breaking down PMI","url":"https://myhome.freddiemac.com/buying/breaking-down-pmi","asOf":"2026-08-21","note":"Private mortgage insurance typically costs $30 to $70 per month for every $100,000 borrowed (0.36% to 0.84% of the loan per year). Required on conventional loans with less than 20% down."},{"id":"hpa","name":"CFPB, When can I remove private mortgage insurance (PMI) from my loan?","url":"https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/","asOf":"2023-08-28","note":"Under the Homeowners Protection Act a servicer must automatically terminate PMI on the date the principal balance is scheduled to reach 78% of the home's original value; the borrower may request cancellation at 80%."},{"id":"closing","name":"Freddie Mac, What are closing costs and how much will I pay?","url":"https://myhome.freddiemac.com/blog/homebuying/what-are-closing-costs-and-how-much-will-i-pay","asOf":"2026-02-26","note":"Closing costs typically run 2% to 5% of the home purchase price, paid in addition to the down payment."}],"warnings":[],"disclaimer":"This prices both paths on assumptions you choose and names the year they cross. It does not recommend one, and it is not financial advice. It leaves out the mortgage interest deduction and every other tax effect, the chance you move early, and the fact that a house cannot be sold in an afternoon."}