Buy vs Rent Calculator
This calculator compares the complete financial picture of buying versus renting: tax benefits, home appreciation and equity, maintenance, and transaction costs on one side, against investing your down payment and monthly savings on the other. Adjust the inputs below to model your specific situation.
Calculator Inputs
Adjust the values below to match your specific situation
Time Horizon
Results: Buy vs. Rent
Renting comes out ahead by $43,740.63 over 10 years.
Change any input above and this updates instantly.
Buying a Home
Renting
See the full breakdown
Buying a Home
Benefits decline over time as mortgage interest decreases.
Renting
30-Year Financial Comparison
Projected net financial position over 30 years for both scenarios, based on your inputs.
The Buy vs Rent Decision
by Alan Brilliant
The factors that determine whether buying or renting is right for you
Beyond Monthly Payments
Comparing a monthly mortgage payment to rent misses most of the picture: tax benefits, opportunity costs, maintenance, and long-term equity all move the answer. This calculator models each of these so you can run the comparison on your own numbers.
Key Factors to Consider
- Tax Benefits: Mortgage interest and property tax deductions lower the effective cost of homeownership
- Opportunity Cost: The down payment and monthly savings from renting could be invested in the stock market
- Home Appreciation: Real estate typically appreciates over time, building equity for homeowners
- Maintenance and Repairs: Homeowners are responsible for all maintenance costs and unexpected repairs
- Transaction Costs: Closing costs and realtor fees add one-time costs on both the purchase and the sale
- Flexibility: Renting offers more flexibility to relocate for career opportunities or life changes
SALT Deduction Cap Increase (2025-2029)
Under the One Big Beautiful Bill Act, the State and Local Tax (SALT) deduction cap increased from $10,000 to $40,000 for 2025, and $40,400 for 2026 (indexed up about 1% per year through 2029). The higher cap phases down for high earners: it shrinks by 30% of the amount your income exceeds $505,000 (2026), down to a $10,000 floor. Unless Congress extends it, the cap reverts to $10,000 in 2030. The SALT deduction combines both state income taxes and property taxes, and the increased limit means more homeowners can deduct both their state income tax and property tax payments.
Impact on Homeowners
The higher cap matters most in states with high income and property taxes. Under the old $10,000 limit, state income taxes alone often used the whole deduction, leaving no room for property taxes. The roughly $40,000 limit leaves room to deduct both, unless your income is high enough to trigger the phase-down.
California Residents: Use Our Specialized Calculator
California's housing laws change the buy vs rent math. Proposition 13 caps property tax increases at 2% per year no matter how much the home appreciates, while AB 1482 and local rent control laws limit annual rent increases. Our California calculator builds both into the numbers.
California Buy vs Rent CalculatorWhat's changed on this page
- August 6, 2026 Rebuilt the tax model on 2026 federal brackets and standard deduction, the $40,400 SALT cap and its phase-down above $505,000, and the $750,000 mortgage interest limit. Fixed the yearly schedule to stop charging a mortgage past payoff, to drop PMI at 80% of the original value, and to invest surplus cash for the buyer as well as the renter. Closing costs now count toward the amount a renter invests instead of buying.
- July 15, 2025 Published.
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