Rent vs Buy Calculator 2026 | Compare Long-Term Wealth

1 Your Scenario

Target Home Price$0

Comparable Monthly Rent$0

Down Payment0%

Mortgage Rate0%

Loan Term

Years You'll Stay0

Advanced Settings

Closing Costs (at purchase)0%

Selling Costs (agent commissions, etc.)0%

Property Tax (per year, % of home value)0%

~1.0%–1.1% is the national average effective rate. It varies a lot by state and county — New Jersey and Illinois run 2%+, while Hawaii and Alabama are often under 0.5%. Check your local county assessor for a real number.

Maintenance & Repairs (per year)0%

HOA Fees (per month)$0

Homeowners Insurance (per year)$0

A common rule of thumb is ~0.35%–0.5% of home value per year.

Renters Insurance (per month)$0

Rent Inflation (per year)0%

Market & Tax Assumptions

Home Appreciation (per year)0%

Investment Return (per year)0%

Filing Status (sets your standard deduction)

Your Marginal Tax Bracket (only matters if itemizing beats the standard deduction)

Savings Discipline (share of what you save by renting that actually gets invested)0%

2 Verdict

Which Wins

Net Worth from Buying$0

Net Worth from Renting + Investing$0

Net Wealth Over Time

Year 1 Cost Breakdown

Item	Buy	Rent

Monthly Payment (principal + interest)

Total Interest (full loan term)

Costs People Often Overlook

What to know before deciding whether to rent or buy

1. Closing Costs

Buying a home comes with hidden costs at closing — loan origination, title insurance, escrow, and recording fees typically run 2%–5% of the purchase price.

2. Maintenance

Homeowners are on the hook for all repairs themselves — renters usually aren't. Budget roughly 1% of home value per year.

3. Opportunity Cost

Your down payment is capital that isn't invested elsewhere — money that could otherwise be compounding in the market.

4. The Tax Deduction Reality

Mortgage interest and property tax are only deductible if you itemize. With the 2026 standard deduction and the $10,000 SALT cap, most homeowners come out ahead simply taking the standard deduction.

5. Liquidity

A home is a far less liquid asset than a diversified portfolio of stocks or funds — selling takes months and costs thousands in fees.

6. Home Appreciation

In a strong housing market, appreciation can be a meaningful source of return for buyers — though it's less predictable, and less liquid, than stock market returns.