What the calculator compares
Over the number of years you plan to stay, it totals:
Cost of buying — mortgage interest, property tax, insurance, maintenance, HOA, closing costs, selling costs, and the opportunity cost of your down payment, offset by principal paydown and appreciation (your equity at sale).
Cost of renting — rent for each year, grown at your assumed rate.
Whichever total is lower is the cheaper option over that horizon, and the calculator shows the dollar gap.
The assumptions that move the result
| Input | Pushes toward buying | Pushes toward renting |
|---|---|---|
| Years staying | Longer | Shorter |
| Home appreciation | Higher | Lower |
| Rent growth | Higher | Lower |
| Mortgage rate | Lower | Higher |
| Investment return | Lower | Higher |
Be honest with appreciation. Long-run U.S. home prices have risen roughly 1% per year above inflation — not the double-digit figures of 2021.
What a calculator can’t weigh
- Stability and control — you can’t be renovicted from a home you own, and you can paint the walls.
- Flexibility — renting lets you move for a job in 30 days.
- Forced savings — a mortgage makes you build equity whether you’re disciplined or not.
- Maintenance risk — a $12,000 roof is the owner’s problem.
Use the number as a starting point, then adjust for how much those factors matter to you. Once you’ve decided to buy, size the purchase with the home affordability calculator.