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Deciding whether to rent or purchase a home represents one of life's most significant financial choices. While rental costs are relatively straightforward, homeownership involves multiple complex expenses that can make comparison challenging.
My Rent vs Buy view compares the key costs of buying versus renting, updated for the year 2025. It shows which choice saves you more money long-term, not just which you can afford now.
Please remember: We're only solving for the financial side of things. Your final decision should take into account personal factors beyond finances.
These three numbers are the main drivers in deciding to rent or buy.
If you don’t have a home price in mind yet, check out my “How much house?” view for an accurate estimate of what you can afford.
This view assumes a fixed-rate mortgage, and calculates the opportunity cost of buying.
Down payment
Mortgage Principal
Mortgage Interest Total
Market factors like home values, rental rates, and stock performance can dramatically affect your results. These variables are highly location-dependent and not the easiest to forecast. We’ve prefilled educated guesses, but feel free to use other Views to get a better estimate.
Buy Value Appreciation
After Tax Return Rate
Homeownership offers tax advantages through deductible property taxes and mortgage interest. The value of these deductions increases with your tax bracket. However, if these deductions don't exceed the standard deduction, buying won't provide additional tax benefits.
Context: Current tax benefits reflect the 2017 Tax Cuts and Jobs Act, which raised the standard deduction while limiting property tax (SALT deduction) and mortgage interest deductions. These rules may change in 2025.
These are standard one-time fees when buying and selling your home.
Home maintenance, renovation, and utilities cost money. The calculator assumes these expenses will rise with inflation.
Renting has unique costs, as well, though they rarely impact a decision.
🏠 Should you rent or buy?
We only recommend home ownership if it represents a strong investment strategy relative to renting and investing.
Estimated monthly mortgage payment
Savings opportunity from ownership
Savings rate from buying
Recommendation
Neutral
Last updated by heyfinfam
Privacy: None of your data is transmitted to the author of this view or any other third parties. Financial inputs are not used to for identification purposes, and are only used to calculate the result.
Disclaimer: This content and any calculations provided are for informational purposes only. The views, calculations, and methodologies expressed are those of the author and do not necessarily reflect those of this platform. Not financial advice. Users are solely responsible for any decisions made based on this information.
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