Rent vs Buy Calculator
Is homeownership really better than renting? Compare true costs over 5 to 10 years.
Monthly & Price Details
Stop Owning Things You Barely Use & Evaluating Home Ownership
Whether evaluating real estate homeownership or deciding whether to buy vs rent specialized equipment (power tools, formalwear, event gear), buying incurs hidden unrecoverable costs: storage space, property taxes, maintenance, interest, and capital lockup.
The 5% Rule for Housing
Unrecoverable Housing Cost: ~5% of home value annually (1% maintenance + 1% property tax + 3% interest cost). If annual rent is LESS than 5% of home price, renting builds more wealth when investing the downpayment difference.
Item Break-Even Formula
If you plan to use an item fewer times than break-even uses, renting is mathematically cheaper.
Practical Real-World Use Cases
🔧 Power Tools & Equipment
A pressure washer costs $300 to buy but $40/day to rent. Break-even is 8 uses—most homeowners never hit that.
👔 Formalwear & Tuxedos
Renting a tuxedo for a 1-day wedding vs buying a $600 designer suit worn once every 3 years.
🏕️ Camping & Outdoor Gear
Renting specialized kayaks, tents, or ski gear for annual trips vs storing them year-round.
🏡 Homeownership vs Lease
Compare 5-year total unrecoverable rent against 5-year unrecoverable mortgage interest, taxes, and HOA.