What mortgage rate does this calculator use for 2026?

The default is 6.75%, reflecting the approximate 30-year fixed rate in April 2026. You can change this to the rate you've been quoted. Rates have ranged from 6.5% to 7.5% in early 2026.

What tax changes affect the 2026 rent vs buy decision?

The most important are unchanged from 2017 TCJA: the $10,000 SALT cap (limiting property tax + state income tax deduction), the $750,000 mortgage interest deduction principal cap, and the standard deduction ($15,700 single / $31,500 married in 2026). Most homeowners in moderate-income situations don't actually save extra on federal taxes from owning — this calculator shows the math transparently.

Should I buy a home in 2026?

It depends entirely on your local market, income, expected stay, and investment returns. This calculator models those factors honestly. With rates around 6.75% and home prices still elevated, the math often favors renting for stays under 5–7 years — but every situation is different. Run your specific numbers to see.

Rent vs Buy Calculator 2026

Free rent vs buy calculator updated for April 2026 — current mortgage rates, 2026 federal tax brackets, and Monte Carlo simulation across 5,000 scenarios.

Last updated: April 2026

Explore more

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Breakeven Calculator

How many years until buying outperforms renting in your scenario

What it does

Current 2026 defaults

Pre-filled with April 2026 mortgage rates, 2026 tax brackets, and current rent growth trends.

Monte Carlo uncertainty

5,000 scenarios show the range of outcomes — not just a single "answer".

2026 SALT cap modeling

Shows exactly how the $10K cap limits deductions in high-tax states like CA, NY, NJ.

How to use Rent vs Buy Calculator 2026

1
Enter your home price and monthly rent
Use the current asking price for a home you're considering and the rent for a comparable unit in the same area.
2
Set your 2026 mortgage rate
As of April 2026, 30-year fixed rates are around 6.5–7%. Enter the rate you've been quoted or use the current average.
3
Set your holding period
How many years do you plan to stay? The breakeven analysis shows when buying typically starts outperforming renting in your scenario.
4
Review your tax situation
Select your filing status and state. The calculator applies 2026 federal tax brackets and the $10K SALT cap — key for CA, NY, NJ, and CT residents.
5
Run Monte Carlo simulation
Enable Monte Carlo to see the full range of outcomes across 5,000 scenarios rather than a single point estimate.

When to use this

First-time buyer evaluating a 2026 purchase

Enter the asking price of a home you're looking at with your quoted rate and see the probabilistic breakeven timeline.

Comparing before spring homebuying season

The March–June window is when most homes sell. Run scenarios now to enter negotiations with clear math.

Rent vs buy in 2026: what the math actually shows

With 30-year mortgage rates around 6.75% and median home prices still 40–60% higher than pre-pandemic levels, the monthly cost of buying now substantially exceeds the cost of renting equivalent housing in most major metros. The rent-vs-buy math only improves for buyers in two scenarios: very long holding periods (10+ years, where rising rents eventually make buying cheaper) or markets with aggressive home price appreciation. In markets where rent growth is moderate and appreciation is near the historical 3.5% average, the Monte Carlo breakeven often falls between years 7–12 for a 20% down payment scenario.

Frequently Asked Questions

What mortgage rate does this calculator use for 2026?: The default is 6.75%, reflecting the approximate 30-year fixed rate in April 2026. You can change this to the rate you've been quoted. Rates have ranged from 6.5% to 7.5% in early 2026.
What tax changes affect the 2026 rent vs buy decision?: The most important are unchanged from 2017 TCJA: the $10,000 SALT cap (limiting property tax + state income tax deduction), the $750,000 mortgage interest deduction principal cap, and the standard deduction ($15,700 single / $31,500 married in 2026). Most homeowners in moderate-income situations don't actually save extra on federal taxes from owning — this calculator shows the math transparently.
Should I buy a home in 2026?: It depends entirely on your local market, income, expected stay, and investment returns. This calculator models those factors honestly. With rates around 6.75% and home prices still elevated, the math often favors renting for stays under 5–7 years — but every situation is different. Run your specific numbers to see.

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