Should I Rent or Buy? — United States

The real math most calculators skip. See your total wealth under both paths.

How US Tax Rules Affect the Rent vs Buy Decision

The US mortgage interest deduction can reduce your monthly cost of owning — but only if you itemize deductions above the $14,600 standard deduction (single) or $29,200 (married). Most buyers in lower-cost markets don’t benefit from this as much as they expect. This calculator accounts for that threshold.

If your down payment is less than 20%, you’ll pay Private Mortgage Insurance (PMI) — typically 0.5% of your loan balance annually — until you hit 20% equity. This hidden cost shifts the math toward renting in the early years.

On the bright side, the US offers generous capital gains exemptions on your primary residence: $250,000 for single filers, $500,000 for married couples. In most scenarios, you won’t owe capital gains tax when you sell.