Rent vs Buy Calculator

Use this rent vs buy calculator to see when buying a home actually beats renting in Texas. The tool factors in rent increases, home appreciation, property taxes, insurance, maintenance, and your mortgage payment so you can find the break-even year and stop guessing. Pair it with our home affordability calculator or monthly payment calculator to confirm your numbers before making the move.

Rent or Buy Over 7 Years

See whether renting or buying costs less over the time you plan to stay.

Rent Details

Monthly Rent

Rent Growth per Year

Buy Scenario

Home Price

Down Payment ($)

Example Rate (%)

Example rate. Change it to match your quote; your APR will differ.

Years You Plan to Stay

years

Assumptions

These are example assumptions, not forecasts. Change any of them to match your market.

Home Appreciation / Yr

Property Tax / Yr

Insurance / Yr

Maintenance / Yr

Buying Closing Costs

Selling Costs

Investment Return on Cash / Yr

Tax, insurance and maintenance are a percent of the home's value each year. Property tax defaults to 2.2%, a typical combined Texas rate before exemptions. Investment return is an assumed yearly return on the down payment and closing costs if you rented and invested that cash instead.

Renting Saves You

$24,204

Over 7 years

Net Cost Analysis

Net Cost to Rent$229,874

Net Cost to Buy$254,078

Monthly P&I$2,210

Net cost to buy = down payment and closing costs + mortgage, tax, insurance and maintenance payments + lost investment return on the upfront cash, minus what you keep after selling (home value less loan balance less selling costs). Net cost to rent = total rent paid. A negative net cost means the sale returned more than you put in. Does not include PMI, HOA dues, tax deductions or investing any monthly difference.

Cumulative Net Cost

Chart runs 5 years past your planned stay (up to 30).

Results are estimates for illustration. Prefilled rates are examples based on national averages as of September 28, 2026, not offers. Your rate and APR depend on your credit, loan and property, and come from a Loan Estimate. Get started for a quote.

Working With STX Lending

We help renters work out when buying makes sense and which loan fits. Use our home affordability calculator, run a monthly payment calculator, or check your DTI before you decide.

Dedicated loan officer from application to closing
Purchase, FHA, VA, conventional and jumbo loans
Rate drop refinance options after you buy
Free calculators to check your numbers first
Apply online when you are ready

Programs that can help you buy

From first-time home buyer programs with down payment assistance to flexible FHA loan and conventional loanoptions, we've got a path that fits.

$0 Down

VA loans for eligible veterans

3.5% Down

FHA loans

Down Payment Help

Assistance programs

Rate Drop

Refinance options

Get started

Rent vs Buy FAQ

How does this rent vs buy calculator decide which costs less?

It adds up what each choice costs over the years you plan to stay. Renting is the rent you pay, rising each year. Buying is the down payment and closing costs, your mortgage payment, property tax, insurance and maintenance, plus the return your upfront cash could have earned if you had invested it. Then it subtracts what you would keep after selling the home and paying off the loan. The lower net cost wins.

Why is the property tax set to 2.2%?

Texas has no state income tax, so local property taxes carry more of the load. Combined city, county, school and special district rates often land around 2% to 2.5% of value. Your homestead exemption ($140,000 off the school district value starting with tax year 2025) lowers the bill, so enter the effective rate for your county if you know it.

What is the investment return on cash?

It is the opportunity cost of your down payment and closing costs. If you rent, that money could stay invested. The calculator assumes a 6% yearly return by default. That is an assumption, not a promise, and you can set it to 0% if you would keep the cash in savings instead.

How long do I need to stay for buying to make sense?

Watch where the two lines cross on the chart. Buying carries large one-time costs, such as closing costs when you buy and agent and title costs when you sell, so short stays tend to favor renting. The longer you stay, the more those costs are spread out and the more principal you pay down.

What does this calculator leave out?

It does not include PMI, HOA dues, income tax deductions, or investing any monthly difference between renting and owning. With 20% down on a conventional loan there is usually no PMI. For a full monthly payment with taxes and insurance, use the mortgage calculator.

Stop Renting. Start Owning.

Let's see how much house you can afford. Read our mortgage pre-approval guide or learn about tax deductions for homeowners.