Las Vegas today: the median asking price is $473,750. Run it at the median with the rent a similar home would fetch, or open any listing and the tool arrives with that home's price and HOA filled in.
How to read the chart
The chart draws owning's advantage over renting: above the even line owning is ahead, below it renting is. The verdict is the year the line crosses even, not the size of the number at the end. If you are likely to move before that year, renting is the cheaper choice at these assumptions even if owning feels like the grown-up one. If you will stay well past it, owning is cheaper and the margin grows every year after. The line starts below even because the up-front costs are booked on day one, and it climbs as principal replaces interest in each payment and the home's value grows.
The rent to compare against is what a similar home actually rents for nearby, not what you pay now. Kouzr's rental listings and its market reports give the asking side; the payment calculator breaks the owning month down line by line, and HOA dues are the line buyers most often forget.
What each side pays
| Owning | Renting | |
|---|---|---|
| Up front | Down payment plus closing costs, about 2% of the price | First month and a deposit, returned at the end |
| Every month | Principal and interest, property tax, insurance, HOA dues, mortgage insurance under 20% down | Rent, rising each year |
| Upkeep | About 1% of the home's value a year, averaged over roofs and water heaters | None. The landlord's problem |
| On the way out | Commissions and transfer costs, about 6% of the sale price | Nothing |
| What you walk away with | The home's value minus the loan balance and selling costs | The growth on the down payment and monthly savings you invested instead |
Defaults: 20% down at 6.5% over 30 years, property tax 0.6% and insurance 0.35% of value a year, upkeep 1%, home prices and rents growing 3% a year, money not spent earning 5%, 2% to buy and 6% to sell. All editable above.
The one-number screen: price-to-rent
Before the full series, the ratio of the price to a year of comparable rent says which way the wind is blowing. The calculator prints it under the verdict for your numbers.
| Ratio | Reading | Why |
|---|---|---|
| Under 15 | Leans toward buying | Rent covers the cost of owning quickly; the break-even arrives in a few years. |
| 15 to 20 | A toss-up | The horizon decides. Five years or less usually favours renting, ten or more owning. |
| Over 20 | Leans toward renting | Owning only wins on long stays or strong appreciation, and appreciation is the assumption to trust least. |
The assumptions that move the answer most
How long you stay
The only input that changes the verdict by itself. Be honest about job, family and the odds of a move before the break-even year.
Home price growth
Every point of appreciation is a point of return on the whole price, not just your down payment. It is also the number nobody knows. The default is moderate.
Interest rate
At 20% down, a one-point change in the rate moves the monthly payment by roughly 10% and the break-even by a year or two.
What the cash would earn
A renter who actually invests the down payment does far better than one who does not. The default assumes they do, at a modest return.
Questions people ask
Why does the answer change with how long I stay?
Buying pays closing costs on the way in and commissions on the way out, and the first years of a mortgage are mostly interest. Those costs are spread over however long you own. Rent, meanwhile, keeps rising. Short stays favour renting, long stays favour owning, and the year they cross is the number that matters.
Why does the calculator give the renter credit for the down payment?
Because a renter still has it. Money not spent on a down payment and closing costs can be invested, and the growth on it is a real benefit of renting. A comparison that ignores it makes buying look better than it is. Only the growth counts, never the principal, since the principal was never spent.
What is the price-to-rent ratio and how do I use it?
The home's price divided by a year of comparable rent. A $400,000 home against $2,000 a month is 16.7. Under about 15 the numbers lean toward buying, over about 20 toward renting, and between them the horizon decides. It is a screen, not an answer: it ignores interest rates, taxes and how long you stay, which is why the calculator runs the full series.
Does a rent-vs-buy calculation apply to Las Vegas specifically?
The arithmetic is the same anywhere; the inputs are local. Las Vegas has no state income tax, so the mortgage-interest deduction matters less than in high-tax states. Property tax is moderate but resets to the full amount for a new buyer. HOA dues are common and belong in the owning column. And rent growth has been uneven, so the rent-growth assumption deserves a second look.
What is left out?
Income-tax effects of mortgage interest and property tax (most filers take the standard deduction, so these rarely change the answer), rent control, and any forecast of interest rates. Every growth rate here is an assumption you can edit; the defaults are moderate, not optimistic.
What if I would rent out the home later, or buy with someone?
Then the comparison is between two different plans, not two ways of housing yourself, and this model does not cover it. Run the calculator for the years you would live there, and treat what happens after as a separate investment decision with its own numbers.
A model with editable assumptions, not financial advice. Whether any specific purchase makes sense depends on facts no calculator holds.