HomeMath — Rent vs Buy & Mortgage Tools
Free calculators for the biggest housing question: should you rent or buy, what is the monthly payment, and how much home can you afford? Local taxes and prices included.
These are estimates using standard formulas (loan amortization and the common 28%/36% guideline). They are not financial or real-estate advice — confirm any number with a lender or broker.
How the numbers are calculated
The calculator totals the cash you would spend buying (down payment, about 3% closing costs, mortgage principal and interest, property tax, insurance, maintenance, and PMI) and subtracts the equity you build, then compares it to total rent minus what your down payment could have earned if invested. The break-even year is when buying pulls ahead of renting on your inputs.
General housing facts
Home prices and property-tax rates vary a lot by location. The mortgage payment is mostly principal and interest, but taxes, insurance, maintenance and PMI often add 20–40% on top. Local prices and taxes change year to year, so always get a formal quote from a lender and check current listings.
Worked examples
Example: a $400,000 home, 6.8% rate, 7-year stay
Put 20% down ($80,000) on a $400,000 home at 6.8% over 30 years. The monthly principal and interest is about $2,086, plus roughly $400 tax, $120 insurance and $150 maintenance — about $2,756 a month to own, before any PMI. Add about 3% closing costs ($12,000) paid up front. Over seven years the buyer’s net cost of owning, after counting the equity kept, comes to roughly $122,000, while renting the same home at $2,000 a month and investing the down payment instead costs about $144,000 on these assumptions. The calculator shows buying pulls ahead around year 4.
Example: a short 3-year stay
Keep every input the same but plan to stay only three years. Closing costs and the slow early pay-down of principal mean the buyer recovers less equity in a short window, while the renter keeps the invested down payment growing from day one. On these numbers the calculator flips to renting being cheaper for a 3-year stay (the break-even sits near year 4), which is why hold time matters more than the monthly payment alone.
Which HomeMath tool should you open?
This page is the Rent vs Buy calculator: enter a home price, rent and how long you will stay to see which is cheaper and the break-even year. If you already know you are buying and want the monthly payment with tax and insurance, open the Mortgage Payment Calculator. If you want to know the price you can qualify for, open the Affordability Calculator. For state-by-state tax differences, open Rent vs Buy by State and the four flagship state pages for California, Texas, Florida and New York.
When this calculator does not apply
This calculator assumes you would invest the down payment if you rented; if you would simply spend it, renting looks comparatively cheaper. It also assumes roughly steady home prices and interest rates and ignores any mortgage-interest tax deduction, which can matter in higher tax brackets.
Data sources & last update
Tax rates and home prices are typical published values (Tax Foundation, FHFA, state revenue departments, Insurance Information Institute) and are examples updated for 2026. They are not a quote — confirm current figures with a lender or local assessor before acting. HomeMath runs entirely in your browser; nothing you type is uploaded.
Frequently asked questions
Should I buy or rent a house?
It depends on how long you will stay, the local price-to-rent ratio, interest rates and ownership taxes. Enter both sides in the calculator and read the break-even year: if you expect to move before that year, renting usually wins; if you stay longer, buying usually wins.
How many years to break even renting vs buying?
The break-even is the hold period at which the net cost of buying equals the net cost of renting on your inputs. The calculator prints it as the year buying becomes cheaper. A common US range is 4 to 7 years, but it moves with prices, rents and rates.
Does this include taxes and insurance?
The rent-vs-buy comparison adds property tax, insurance, maintenance and PMI to the buying side, and an assumed investment return on the down payment to the renting side. The mortgage tool shows the tax-and-insurance-included monthly payment separately.
What about PMI?
If your down payment is under 20%, lenders usually charge private mortgage insurance (PMI), shown as a monthly field. The calculator adds it to the buying cost so the comparison is realistic.