Should you rent or buy?
Compare the monthly cost of buying a home (payment plus tax) against renting a similar one, and see which makes sense based on the price-to-rent ratio.
Based on your figures
Buying tends to make sense It's roughly a toss-up Renting tends to make sense
Price-to-rent ratio: . Below 15 buying usually wins; above 20 renting does; in between it depends on how long you stay.
The cost of buying includes an estimate of property tax; it excludes maintenance and insurance.
Enter the home price and a comparable rent to see the comparison.
1 USD ≈
The monthly rent of a similar property.
Reference rate (market average); adjust it to your case.
Reference comparison. It excludes appreciation, maintenance, insurance and closing costs; adjust it to your case.
Know how much you can afford? Home affordability →
Want to check how much rent makes sense for you? Rent affordability →
Frequently asked questions
How do I know whether to rent or buy?
A quick guide is the price-to-rent ratio: the home price divided by the annual rent of a similar one. Below 15 buying usually makes sense, above 20 renting does, and in between it depends on how long you plan to stay.
What does the monthly cost of buying include?
The estimated mortgage payment plus an estimate of property tax. It doesn't include maintenance, insurance or closing costs, which vary by case.
Does the tool cost anything?
No, it's free and requires no sign-up. It's a reference comparison to help you decide.