Rent vs. Buy Calculator

Considerations when deciding to rent vs. buy

Our renting vs. buying calculator can help you think through:

• How long do I plan to live in the home?
• What neighborhoods am I interested in?
• What are current mortgage rates?
• Can I afford the monthly mortgage payment for a home in my preferred area?
• Would I prefer a more predictable monthly housing payment?
• Do I have enough money for a down payment and closing costs?
• Can I afford the cost and effort of maintaining a home?
• How much space do I need for myself, my family or pets?
• Do I want to live near certain amenities, such as schools, recreation, shopping or dining?

It's also essential to understand the trajectory of home values in your area. Have they been soaring in recent years? Are more people moving into or out of the area? Could the area become a hot spot in the future? Generally, if the trendline is increasing, this may suggest better odds of a long-term increase in value.

Often, the differences between renting and buying boil down to the upfront and ongoing costs:

• Upfront costs: To buy a home, you'll need a down payment and closing costs. These are more expensive than the security deposit and any upfront rent payments you'll need to sign a lease. Depending on square footage, you might spend more money furnishing the home you buy, too — especially compared to renting a fully furnished space.
• Ongoing costs: As a homeowner, you'll pay for homeowners insurance, which is more costly than a renter's policy, plus property taxes. You'll also be responsible for maintenance and repairs, and potentially costs like an HOA fee or garbage removal service.

Renting is a better choice if you want to minimize your upfront costs and avoid the ongoing expenses of homeowners insurance, maintenance and repairs. It’s also a good temporary option if you’re still saving for a down payment. And since renting offers more flexibility than buying, it can be beneficial if you want to test out a city or neighborhood before buying a place

If you’re ready to plant permanent roots and you have enough money saved for a down payment and closing costs, purchasing a home could be the right choice. Buying lets you start accumulating equity, helping you recoup the initial transaction costs and build wealth. Plus, it offers more long-term stability, and you don't have to worry about your landlord selling the property or raising your rent.

Across the top 50 metro areas in the U.S., renting a home is cheaper than paying a mortgage right now, according to Bankrate's 2025 Rent vs. Buy Study.

In some places, renting is a lot cheaper. For example, in the Denver metro area, the average monthly mortgage payment is $3,787, while the average monthly rent is $1,927.

In others, the difference isn't as stark: Renters in the Pittsburgh area, for instance, pay an average of $1,452 per month, while the average monthly mortgage payment is $1,601.