Should you rent or buy?

It depends mostly on how long you plan to stay. Buying has large upfront costs, so it takes a few years of building equity to come out ahead of renting. This analyzer finds your personal breakeven year based on the price, your rate, rent, and how long you stay. Because St. Louis home prices are moderate relative to rents, buying often breaks even faster here than in high-cost coastal markets.

It is the year when the cumulative cost of buying drops below the cumulative cost of renting. The calculator adds up everything a buyer spends (down payment, closing costs, mortgage, taxes, insurance, upkeep) and subtracts the equity they build, then compares that to what a renter spends on rent minus the investment return they could earn on the cash a buyer tied up. Before the breakeven year, renting is cheaper; after it, buying is.

No. If you sell before your breakeven year, renting usually wins because you never recover the upfront buying and selling costs. Buying tends to win when you stay long enough, when rents are rising quickly, or when the home appreciates. The right answer is personal, which is why this tool asks how long you plan to stay.

A realistic comparison includes property taxes, homeowners insurance, ongoing maintenance (often about 1% of the home value per year), any HOA dues, closing costs to buy (roughly 2-3%), and selling costs when you eventually sell (commonly 6-8%). This calculator includes all of these so the comparison is fair.

For many St. Louis buyers the breakeven lands somewhere around three to seven years, but it varies with your rate, down payment, rent, and assumptions about appreciation. Enter your own numbers above to see your specific breakeven year.