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Honest Figures

Buying a home

Rent vs Buy Calculator

Over 7 years, renting at $2,000 a month costs about $183,899, while buying a $400,000 home works out to roughly $169,282 once the equity you build is counted. In this example, buying comes out ahead. The biggest factor is how long you stay. Set your numbers below and watch the answer flip as the years change.
Rent vs Buy
Buy
comes out ahead over 7 years
20%
7
Cost of renting$183,899
Net cost of buying$169,282
Buying saves$14,617

Why the timeline decides it

Buying front-loads a lot of cost, the down payment, closing fees, and years of interest-heavy payments. It takes time for the equity you build and any rise in the home's value to make up for that. Drag the years slider and you will usually see renting win for a short stay and buying win for a long one. This is a simplified model, so it leaves out things like the tax treatment of mortgage interest, selling costs, and what you could earn by investing the down payment instead. Use it to get the shape of the decision, not the last dollar.

Simplified estimate. Assumes about 3% yearly growth in both rent and home value. Not financial advice.

Freddie Mac · Jul 9, 2026
6.49%
30-year fixed mortgage rate

On a $360,000 loan, about $2,273 a month in principal and interest.

Work out a mortgage

Common questions

Is it better to rent or buy?

It mostly comes down to how long you stay. Buying needs several years for equity and price growth to overtake what renting would have cost. Short stays favor renting, long stays favor buying.

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