Question 1

Is renting or buying cheaper?

Accepted Answer

It depends entirely on your time horizon, local rent-to-price ratio, and mortgage rate — there's no universal answer. A short expected hold (under 3-4 years) usually favors renting because closing and selling costs eat the gains; a long hold usually favors buying.

Question 2

Why does the down payment matter to a rent-vs-buy comparison?

Accepted Answer

Because that money isn't gone if you rent — it can be invested instead, and what it would have earned is a real cost of owning that a simple payment comparison ignores entirely.

Question 3

Does this account for tax deductions?

Accepted Answer

Only if you turn on the itemization toggle in Advanced Settings. Most homeowners now take the standard deduction under current tax law, so mortgage-interest and property-tax deductions often add less value than assumed — check whether itemizing actually beats your standard deduction before counting on it.

Question 4

What's a realistic home-appreciation assumption?

Accepted Answer

Long-run U.S. home price appreciation has averaged roughly 3-4% a year before inflation, though it varies enormously by market and period. Try the calculator at both a conservative (2%) and optimistic (5%) rate to see how sensitive your answer is.

Is it cheaper to rent or to buy, for how long you'll actually stay?