Should You Buy?

Rent vs. Buy Calculator

Compare the true cost of renting with buying over time, including appreciation, rent increases, selling costs, and what your down payment could earn invested.

Buying

Today's average as of September 14, 2026. Adjust to your quote.

Renting

Results

Buying Beats Renting

Year 7

Break-even year on these assumptions

Buying comes out ahead in year 7. Plan to stay at least that long, or renting is cheaper on these assumptions.

5-Year Cost of Buying

$181,009

5-Year Cost of Renting

$165,191

10-Year Cost of Buying

$296,315

10-Year Cost of Renting

$352,168

Monthly Mortgage Payment (P&I)$3,772.82
Current Monthly Rent$3,200

Net cost by year (lower is better)

YearBuyingRentingHome Equity
1$71,412$31,400$166,553
2$100,061$63,602$194,145
3$127,906$96,623$222,824
4$154,904$130,480$252,643
5$181,009$165,191$283,657
6$206,172$200,774$315,922
7$230,341$237,244$349,501
8$253,461$274,622$384,459
9$275,473$312,924$420,863
10$296,315$352,168$458,788
11$315,920$392,372$498,309
12$334,216$433,554$539,509
13$351,130$475,732$582,473
14$366,579$518,924$627,295
15$380,478$563,148$674,072
16$392,737$608,422$722,907
17$403,256$654,762$773,910
18$411,934$702,188$827,197
19$418,658$750,715$882,894
20$423,310$800,361$941,132
21$425,765$851,142$1,002,051
22$425,887$903,076$1,065,801
23$423,533$956,177$1,132,540
24$418,549$1,010,462$1,202,437
25$410,770$1,065,946$1,275,673
26$400,023$1,122,643$1,352,438
27$386,120$1,180,566$1,432,936
28$368,860$1,239,729$1,517,386
29$348,030$1,300,145$1,606,018
30$323,402$1,361,824$1,699,079
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FAQ

Rent vs Buy Calculator Questions

Straight answers from a California mortgage broker.

Buying counts your down payment, every mortgage, tax, and insurance payment, then subtracts what you would net if you sold that year (equity minus selling costs). Renting counts rent with yearly increases, minus the growth your down payment would have earned invested. The break-even is the first year buying costs less.
Southern California has averaged roughly 4-6% a year over long periods but swings widely. The default of 3% is conservative. Test 0% to see the downside and 5% for a typical decade.
Agent commissions, transfer taxes, and closing fees run about 5-7% of the sale price. They are the main reason buying rarely pays off in the first two or three years.

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This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Rates, terms, and availability of programs are subject to change without notice.

Reviewed by Joann Ton, Loan Officer (NMLS# 1461031) | Last updated: September 2026