Rent vs. Buy Quick Calculator

Last updated July 2, 2026

The rent vs. buy decision is one of the most consequential financial choices most people make, and the conventional wisdom that buying is always better than renting is more nuanced than it appears in most conversations. Buying builds equity over time and provides the stability of a fixed mortgage payment, but also carries transaction costs that take years to recover: realtor commissions, closing costs, and the maintenance expenses of ownership add up to a substantial drag on early-year returns. Renting, meanwhile, offers flexibility and access to the full cost of housing without capital locked in an illiquid asset — and the investment return on a down payment left in the market can be substantial over a decade or more.

The New York Times' Buy vs. Rent calculator, one of the most rigorous tools on the subject, accounts for the opportunity cost of the down payment, expected home price appreciation, rent increases, tax deductions, and transaction costs. Its conclusions frequently surprise users: in markets with low price-to-rent ratios and high transaction costs, renting is financially superior for time horizons under five to seven years. In markets with high price-to-rent ratios — where home prices are very high relative to what comparable homes rent for — the break-even point can extend to 10 or 12 years. In lower-cost markets with favorable appreciation histories, buying can be advantageous in just three to four years. The right answer depends almost entirely on how long you plan to stay.

The rent vs. buy decision is primarily a question of time horizon. If you're confident you'll stay for seven or more years, buying is usually financially advantageous in most markets. Under five years, the transaction costs of buying and selling typically mean renting wins on pure dollars. Calculate your specific break-even point using your local price-to-rent ratio and realistic expected holding period.