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Big decisions

Rent vs. Buy: The Math, Minus the Opinions

The real inputs behind the rent-or-buy decision: PITI, maintenance, closing costs, and how long you stay.

  • 6 min read
  • Updated October 8, 2026
  • By Christian Brinkley

Short answerRenting means one monthly payment and the landlord handles repairs. Buying means a mortgage plus taxes, insurance, and maintenance, and you build equity as you pay down the loan. The honest comparison puts every cost of each side on paper for your own numbers. This page shows the inputs, not the answer.

The rent side

Rent is the monthly payment, plus any renter's insurance and utilities not included. Repairs belong to the landlord.

Rent can rise at renewal. A lease locks the rate only for its term.

The buy side: PITI

PITI stands for principal, interest, taxes, and insurance. Principal is the loan balance you pay down. Interest is the lender's charge.

Property taxes go to your county or city. Homeowner's insurance protects the property. Lenders combine all four into one monthly payment number.

The buy side: everything else

Closing costs are the fees to complete the purchase, paid once at the start. Maintenance and repairs are yours now. Roofs, HVAC systems, and appliances all age.

HOA dues apply in many neighborhoods and rise over time. Selling costs money too, whenever that day comes.

How long you stay

Buying spreads its one-time costs over the years you live there. A short stay gives those costs less time to pay off. A long stay lets equity build as the loan balance drops.

Your own timeline is one of the biggest inputs in the math.

Run your own numbers

List every monthly and one-time cost on both sides. Use real quotes for taxes, insurance, and HOA dues, not guesses.

Compare total cost per year of staying, not just the monthly payment. This page cannot tell you which choice wins. Your numbers can.

Sources

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Christian Brinkley, Greensboro, NC, (919) 408-6671

FAQ

Quick answers

What does PITI stand for?

Principal, interest, taxes, and insurance. Lenders roll all four into one monthly payment.

Do I build equity if I rent?

No. Rent buys you a place to live for that month. A mortgage payment's principal portion builds your ownership stake.

What costs surprise first-time buyers?

Closing costs at purchase, plus maintenance and repairs after. The CFPB homebuyer guide in the sources walks through the full list.

Is a bigger down payment always better?

A bigger down payment shrinks the loan and the monthly payment. It also ties up cash you could use elsewhere. Both sides matter.

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