Free Tool

Rent vs. Buy Calculator

Is it cheaper to rent or buy a home right now? Enter your numbers and see exactly how much equity you could be building — and when buying beats renting.

Your Numbers

$2,750
$500$5,000
$440,000
$100,000$900,000
5.3%
2%12%
7 yrs
1 yrs30 yrs

Assumes $0 down payment (No Downpayment loan / Special Loan Program), 1% prepaids (Zero closing costs), 30-yr loan, 1.1% property tax, 1% maintenance, 3% annual appreciation & rent increase. Selling costs: 6% ≈ $32,469 at Yr 7.

🏡 Buying wins over 7 years

Buying saves ~$66,329 vs. total rent paid · Break-even at Year 4

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💸 Total Rent Paid

$252,861

Gone forever — zero equity

🏡 Buy Net Cost

Buy Net Cost = everything you paid (mortgage, taxes, insurance, maintenance) minus the home equity you built. It's your true out-of-pocket cost of buying — like rent, but you got something back.

$186,532

After equity — effective cost

📈 Home Equity Built

Home Equity = your home's value minus what you still owe on the mortgage. This is wealth you've built — even if you never sell, it's yours. If you do sell, you pocket this amount (minus selling costs).

$151,862

Your money, not your landlord's

Rent vs. Buy — Where Does Your Money Go?

Renting = total paid, gone. Buying = net cost after equity. Green = equity you own.

Yr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7$0$65k$130k$195k$260k
  • Total Rent Paid
  • Buy Net Cost
  • Home Equity

🎉 Buying saves you

$66,329

compared to renting over 7 years

Monthly mortgage payment: $2,947

vs. your current rent of $2,750 · Upfront prepaids only: $4,400

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With the No Down Payment program you can start saying

"I'm Buying My Home!"

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⚠️ Disclaimer

This calculator is provided for educational and illustrative purposes only and does not constitute financial, tax, legal, or mortgage advice. Results are estimates based on the inputs provided and simplified assumptions. Actual costs, mortgage payments, appreciation, taxes, and returns will vary. Capital gains exclusions are based on current IRS rules ($500,000 married filing jointly / $250,000 single) and are subject to change. Consult a licensed mortgage professional, CPA, and/or financial advisor before making any real estate or financial decisions. Matt Ghazarian | eXp Realty — CA DRE License on file.

Should You Rent or Buy a Home in 2026?

Deciding whether to rent or buy is one of the most important financial decisions you'll make. While renting offers flexibility, buying builds equity — meaning every mortgage payment goes toward an asset you own. With home values historically appreciating 3–5% per year, buying sooner rather than later can mean hundreds of thousands of dollars in long-term wealth.

Our free rent vs. buy calculator lets you model any scenario. Adjust the sliders to match your situation and see your personal break-even point.

What Is the No Down Payment Loan Program?

Our no down payment loan program helps qualified homebuyers purchase with a fixed-rate mortgage, no down payment, no closing costs, and no PMI. The program is one of the most powerful homebuying tools available for working families. Matt Ghazarian of eXp Realty specializes in these programs and serves buyers in 48 states. Contact Matt to learn about current rates and whether you qualify.

Frequently Asked Questions

Is it cheaper to rent or buy a home right now?

In most U.S. markets, buying a home builds long-term wealth through equity while renting results in zero ownership. With special loan programs offering 0% down payment, no PMI, and no closing costs, monthly mortgage payments are often comparable to — or less than — monthly rent. Use the calculator above to compare your specific numbers.

How much do I need for a down payment to buy a home?

With special loan programs available through Matt Ghazarian at eXp Realty, qualified buyers can purchase a home with 0% down payment. Conventional loans typically require 3–20% down.

What is the break-even point for buying vs renting?

The break-even point is when the total net cost of buying (mortgage, taxes, insurance, minus equity gained) becomes less than the total cost of renting. On average this is 3–7 years, but it depends on your local market, interest rate, and home appreciation. Our calculator shows your exact break-even year.

What mortgage rate does this calculator use?

The calculator is pre-filled with a sample interest rate. You can adjust the rate slider manually to model any scenario.

How does renting compare to buying over 5 or 10 years?

Over a 5–10 year period, homeowners typically build significant equity through mortgage paydown and home appreciation, while renters pay 100% to a landlord with nothing to show for it. Our rent vs. buy calculator lets you model any time horizon to see the exact financial difference.

Can I buy a home with no money down?

Yes. Through special loan programs, qualified buyers can purchase a home with zero down payment. Matt Ghazarian of eXp Realty specializes in these programs and has helped hundreds of families become homeowners. Get qualified for free at imbuyingmyhome.com.

Ready to stop renting and start building equity?

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