Is it cheaper to rent or buy?

Month to month it depends on prices, rates and rent. This compares the full monthly cost of owning — mortgage, tax and upkeep — against rent. Over time, equity and appreciation shift it toward buying.

What costs does owning add beyond the mortgage?

Property tax, maintenance (~1% of value a year), homeowners insurance and any HOA fees. They can add hundreds a month.

Does this include home appreciation and equity?

No — it is a monthly cost comparison. Equity, appreciation and the opportunity cost of your down payment all matter for the long-run decision.

How long should I plan to stay to make buying worth it?

Often about five years. Below that, the costs of buying and selling tend to make renting cheaper.

Finance

Rent vs. Buy Calculator

Renting and buying rarely cost the same month to month. This adds up the real monthly cost of owning — mortgage, property tax and upkeep — and puts it next to the rent, so you can compare like with like before the bigger decision.

Your numbers

Result

Monthly cost to own

$2,348.19

Monthly rent

$2,000.00

Own minus rentpositive = owning costs more: $348.19

This compares monthly cost only. It does not count home appreciation, the equity you build, or what your down payment could earn if invested — all of which shift the long-run picture.

Monthly cost: own vs. rent
Item	Monthly
Mortgage (principal + interest)	$1,735.69
Property tax	$320.83
Maintenance	$291.67
Total to own	$2,348.19
Rent	$2,000.00

The monthly cost of owning

Owning is more than the mortgage. It also carries property tax (often ~1–1.5% of value a year), maintenance (a common rule of thumb is ~1% a year), plus homeowners insurance and any HOA fees. Add those to the principal-and-interest payment to get the true monthly cost — which is what this compares against rent.

What the monthly number leaves out

A monthly comparison is only part of the story. Buying builds equity (part of the payment pays down the loan), the home may appreciate, and there are tax considerations — all in owning's favor over time. Against that, your down payment and closing costs are tied up and could have earned a return if invested. The longer you stay, the more buying tends to win.

The five-year test

A common guideline: if you will stay put for at least five years, buying often comes out ahead once equity and appreciation are counted; for shorter stays, the transaction costs of buying and selling usually make renting cheaper. Use this monthly figure alongside how long you plan to stay.

Informational and educational result. Not a substitute for professional advice.

Frequently asked questions

Sources

Housing cost comparison (ownership carrying costs vs. rent)

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