Rent vs. Buy, does buying make sense?

When considering the cost of renting versus buying, it's important to weigh the potential for home appreciation. Owning a home allows you to build equity over time, which can lead to significant financial gains as property values increase. Compare the true cost of renting against owning over your time horizon — rent increases, appreciation, maintenance, equity, and your break-even year.
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Renting
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$
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Buying
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$
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After 7 Years
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$0
Total Rent Cost
$0
Total Buy Cost
$0
Home Value
$0
Equity Built
$0
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Breakeven Analysis
Breakeven Year—
Monthly Buy Cost$0
Monthly Rent (Year 1)$0
Net Buy Cost (after equity)$0
💡 Buying typically makes more sense if you plan to stay 5+ years.
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The information provided by this calculator is for illustrative purposes only and accuracy is not guaranteed. The values and figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a financial professional prior to relying on the results. This calculator does not have the ability to pre-qualify you for any mortgage or loan program. Qualification for mortgages or loans requires additional information such as credit scores and existing debts which is not gathered in this calculator. Information such as interest rates and pricing are subject to change at any time and without notice. All information such as interest rates, taxes, insurance, monthly mortgage payments, etc. are estimates and should be used for comparison only. Ark-La-Tex Financial Services, LLC – NMLS#2143 does not guarantee any of the information obtained by any calculator.

Frequently asked

Questions that we get from most borrowers...not just you.

Does the calculator count my down payment as a cost?

The down payment isn’t spent — it converts to equity. The comparison accounts for it as money invested in the home rather than money lost.

What if home prices don't appreciate?

Set appreciation to 0% and compare. Even without appreciation, principal paydown builds equity — though the verdict may shift toward renting for shorter stays.

What costs of owning do renters often forget?

Property taxes, insurance, maintenance, and HOA dues. This model includes them — which is why the monthly buy cost is higher than just a mortgage payment.

Is it cheaper to rent or buy?

It depends almost entirely on how long you stay. Renting usually wins for short horizons because of transaction costs; buying tends to win over 5+ years as equity and appreciation compound. This calculator shows your specific break-even year.