Our rent vs buy calculator helps you make a data-driven decision about whether to rent or buy in your specific situation. But a calculator is only as good as its inputs—and your understanding of what the results mean.
This guide walks you through each input field, explains what assumptions the calculator makes, and shows you how to interpret the results to make a confident decision.
Calculator Walkthrough
Follow these steps to get accurate results
Enter Home Purchase Price
The total purchase price of the home you're considering. Include only the price, not closing costs.
Set Your Down Payment
Enter as a percentage (e.g., 20%). Under 20% will add PMI to your costs.
Input Monthly Rent
What you'd pay to rent a comparable home in the same area.
Choose Your Timeline
How long you plan to stay. This is the most important variable.
Review Results
Compare total costs and see when buying becomes cheaper than renting.
Common Mistake
Don't compare your current rent to your potential mortgage payment. Compare what you'd pay to rent a SIMILAR home to the one you'd buy. A 1-bedroom apartment rent vs. a 3-bedroom house mortgage isn't apples to apples.
Understanding Each Input
Home Price
Use the actual listing price or your expected purchase price. The calculator will add closing costs (typically 2-5%) separately in its calculations.
Down Payment
If you put down less than 20%, you'll pay Private Mortgage Insurance (PMI)—typically 0.5-1% of the loan amount annually. The calculator factors this in automatically.
Interest Rate
Use the rate you actually qualify for, not advertised rates. Get pre-approved first to know your real rate. In early 2026, most buyers see rates between 6.25% and 7%.
How to Read the Results
Break-even point: When buying becomes cheaper than renting
Total cost comparison: All-in costs over your timeline
Equity built: How much of your payments become ownership
Opportunity cost: What your down payment could earn invested
Ready to Run Your Numbers?
Try the calculator now with your specific situation.