Is owning a home cheaper than renting?

No, not month to month. Owning is almost always more expensive than renting once you include mortgage P&I, property tax, insurance, and 1 percent of home value annually in maintenance. Owning wins over 5 to 10 years because the carrying costs build equity for the owner while rent does not.

How much does owning cost per month vs renting?

For a $450,000 home in Massachusetts with 5 percent down at 6.5 percent, the all-in monthly cost (P&I + tax + insurance + maintenance + PMI) is typically $3,500 to $4,000. The same household might rent a comparable apartment for $2,500 to $3,000 per month. Owning is more expensive, but it builds equity.

At what point does owning beat renting financially?

Typically around year 5 to 7, depending on rent inflation, appreciation rate, and your down payment. Renting wins in the first 2 to 3 years (closing costs and lower monthly outflow). Owning takes the lead later as equity builds and rent inflation compounds.

What if home values do not go up?

Even with zero appreciation, owning typically still beats renting over 10+ years because principal paydown builds equity. Negative appreciation (home values falling) is the scenario where renting can win long-term. MA, NH, and Maine have averaged 3 to 5 percent annual appreciation over the past 30 years.

Apartment vs Home Total Cost Calculator

Apartment vs home: 5-year honest comparison

This calculator shows the honest math: owning is usually more expensive month to month than renting once you include taxes, insurance, and maintenance. The difference is that owning builds equity and appreciation while renting builds neither. Both sides of the math, in one view.

Current monthly rent

Target home price

Down payment

Advanced (rates, inflation, taxes, maintenance)

Mortgage rate (%)

Annual rent increase (%)

Property tax ($/$1,000)

Home appreciation (%)

Renting 5 years

Year-1 monthly rent$0

Year-5 monthly rent$0

Total rent paid$0

Equity built$0

Net 5-year position$0

Owning 5 years

Monthly P&I + tax + ins + maint$0

Total paid out$0

Principal paid down$0

Home appreciation$0

Net 5-year position$0

Talk to GoldCoast about your home ownership plan

Owning side assumes 1% of home value annually in maintenance (industry rule of thumb), $1,500 annual homeowner insurance, and the property tax rate you set. PMI is assumed only if down payment is below 20%. Tax deductibility of mortgage interest and property tax is not modeled here (varies by tax bracket and itemizing status).

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The honest version of the rent vs buy question

Most rent-vs-buy calculators rig the outcome. They either lowball ownership costs (skipping maintenance, insurance, taxes) or skip the equity side of the math. This calculator does both honestly. Owning a home is almost always more expensive month to month than renting once you include the real carrying costs. The reason owning still usually wins over 5 to 10 years is that the money you pay as an owner builds equity. The money you pay as a renter does not.

What is in the owner-side calculation

Principal and interest on a 30-year fixed at the rate you set. Property tax at the rate you set (varies wildly by Massachusetts, NH, or Maine town). Homeowner insurance at about $1,500 per year. Maintenance at 1 percent of home value per year (industry rule of thumb). PMI if your down payment is below 20 percent on a conventional loan. The total monthly cost of owning is meaningfully higher than just the P&I number on most calculators.

What is in the equity calculation

Three sources of equity for the owner: the initial down payment, principal paid down through the mortgage payments, and home value appreciation. At a 4 percent annual appreciation rate (long-run average for MA, NH, and Maine), a $450,000 home grows to about $548,000 over 5 years. The owner captures all of that gain. The renter captures zero of it.

How to read the net 5-year position

The “Net 5-year position” is equity built minus total cash paid out. A negative number means net cost over the period. A less-negative number means you are ahead. Renting is typically a 5-year hit equal to the total rent paid (no equity offset). Owning is typically a smaller net hit because the equity built recovers a large part of the total carrying costs. Over longer periods (10 years and up) owning often turns positive because appreciation and principal paydown compound.

Get the real numbers for your scenario

Talk to GoldCoast for a precise read on what owning would cost you, accounting for current rates, your credit, down payment options, and which first-time-buyer programs apply.

Related guides at GoldCoast

All mortgage calculators: the full suite of tools
Massachusetts mortgage calculators: MA-specific tools
New Hampshire mortgage calculators: NH-specific tools
Maine mortgage calculators: ME-specific tools
Cost of renting calculator: see what you write your landlord over 10 or 20 years
How much rent can I afford?: rent affordability with home equivalent
First step to buying a home: start your conversation with GoldCoast

Apartment vs Home: 5-Year Total Cost Calculator