How This Calculator Works
Most calculators only compare mortgage payments to rent. Ours models every cost layer — PMI, HOA, state property taxes, opportunity cost — and shows your real net wealth position.
True Cost of Buying
We include down payment, closing costs, state property taxes (real rates for all 50 states), homeowners insurance, HOA fees, PMI when applicable, maintenance, and all mortgage interest — not just the headline payment.
Opportunity Cost
Your deposit locked in property can't be invested. We model what it earns in a stock portfolio, compounded monthly — then compare your net wealth in both scenarios fairly at your chosen time horizon.
Regional Accuracy
US property tax rates range from 0.28% (Hawaii) to 2.47% (New Jersey). Our calculator pre-fills the correct rate, typical HOA average, and homeowners insurance cost for every state the moment you select it.
Frequently Asked Questions
Common questions about renting vs buying in the US and UK.
What is PMI and when does it apply?
Private Mortgage Insurance (PMI) is required by US lenders when your down payment is below 20%. It typically costs 0.5–1% of the loan per year, added to your monthly payment. Once you hit 20% equity, you can cancel it. Our calculator automatically applies PMI at 0.6% and removes it once 20% equity is reached.
Do all US homes have HOA fees?
No — about 53% of US homeowners pay HOA fees. The national median is $135/month per the 2024 Census ACS, but new-build communities and condos often charge $200–$500/month. The Northeast averages $250–$400/month; the Southeast $200–$300. Toggle HOA on or off depending on your target property.
How do property taxes vary by US state?
Significantly. New Jersey has the highest effective rate (~2.47%), while Hawaii is the lowest (~0.28%). Texas (~1.69%), Illinois (~2.19%), and New Hampshire (~2.18%) are high. Alabama (~0.41%), Colorado (~0.51%), and South Carolina (~0.57%) are low. Select your state and the correct rate pre-fills automatically.
What are typical US closing costs?
Buyer closing costs typically run 2–5% of the loan amount, covering lender fees, appraisal, title insurance, and pre-paids. Seller closing costs are typically 5–6% (agent commissions). Our calculator uses state-specific estimates: coastal and Northeast states typically run higher (3–4%) than the Midwest (2–2.5%).
How much is stamp duty in the UK in 2025?
First-time buyers pay 0% up to £425,000, then 5% up to £625,000. Standard buyers: 0% to £125,000; 2% to £250,000; 5% to £925,000; 10% to £1.5m; 12% above. These thresholds apply in England and Northern Ireland — Scotland and Wales use different systems (LBTT and LTT).
When does buying clearly beat renting?
Generally when you stay 5+ years, property grows faster than your alternative investment returns, and the all-in monthly cost (mortgage + taxes + insurance + HOA + maintenance) is reasonably close to local rent. Use the breakeven chart and try different growth assumptions — the range of outcomes tells you more than any single scenario.