Rent vs buy in 2026: the 5-number worksheet that settles it

Rent-versus-buy debates often assume one side must always be smarter.

A useful comparison asks instead: which choice fits the home, time horizon, cash, and flexibility you actually have?

Skip another contest between renting and homeownership evangelists. Put both paths' costs where you can inspect and discuss them.

The worksheet asks for five numbers. Use current figures from the actual property and lease under consideration. Mark an unknown honestly, then find its source instead of substituting a guess.

Use this as a decision worksheet, not as personal tax, legal, lending or investment advice.

The five numbers

1. Monthly rent

Record the complete monthly rent for a home you would genuinely choose.

Monthly rent: __________________

Add a likely increase only when documentation supports it. Otherwise, label the future change as a question.

2. All-in monthly ownership cost

Never compare full rent against only principal and interest. Add the ownership costs that would arrive with the property:

• principal and interest;
• property taxes;
• homeowners insurance;
• HOA or other required fees; and
• a maintenance reserve that reflects the property’s condition.

All-in monthly ownership cost: __________________\n\nA CFPB mortgage guide identifies monthly property taxes, homeowners insurance, HOA fees or ground rent among housing costs used alongside the loan payment (CFPB ability-to-repay guide).

You cannot predict every repair. You can still avoid a comparison that counts recurring costs on only one side.

3. Upfront cash required

List every dollar required before moving. Depending on the purchase, include down payment, closing costs, inspection, moving, immediate repairs and basic setup. The CFPB's readiness checklist separately asks whether you can pay insurance and taxes and reserve money for closing, moving, furniture, repairs and improvements (CFPB homebuyer checklist).

Upfront cash required: __________________

Next, identify the cash's current job. Is it an emergency reserve, a planned investment, money for another goal, or simply unassigned cash? The use matters because tying up the cash changes your flexibility even when the monthly payment looks manageable.

Current use of that cash: __________________

4. Time horizon

Write the length of time you can realistically defend.

Expected time in the home: __________________

Do not choose the horizon merely because it flatters buying. A likely job change, relationship change, family change, or move belongs in the uncertainty column—not hidden inside a confident answer.

5. The alternative use of your money

Number five does not require forecasting investment returns. It is the value of keeping your upfront cash and flexibility available for the alternative that matters to you.

What the cash would otherwise support: __________________

What uncertainty would make that alternative more or less valuable: __________________

You are making the trade visible: buying may provide stability and a home you control, while renting may preserve mobility and cash flexibility. Neither benefit should be smuggled into the decision as if it were free.

Put the numbers side by side

Question	Renting	Buying
Monthly cost	__________________	__________________
Upfront cash	__________________	__________________
Expected time in the home	__________________	__________________
Flexibility you keep	__________________	__________________
Cost or risk you are accepting	__________________	__________________

Pause over the final two rows. A spreadsheet can compare payments; you still have to decide what flexibility, stability, maintenance responsibility, and uncertainty mean for your life.

The decision questions

After completing the page, answer four questions in writing:

1. Which number is still an assumption rather than a fact?
2. What would have to change for the other option to become better?
3. What is the smallest reversible next step—gathering a quote, reviewing a lease, speaking with a qualified professional, or viewing a property—that would replace an assumption with evidence?
4. What decision date will keep this from becoming an endless research project?

Give the decision date real weight. Weeks of data collection can become another form of avoidance. The first step that is actually useful is the one that turns uncertainty into a specific question and gives you a time to answer it. Money Planning Frank is the TrueTalk advisor attached to this worksheet, a personal finance educator and investment researcher for comparing the five numbers without turning the result into a generic answer.

A clearer way to start

When you have circled the choice, limit the first sitting to the worksheet. Fill the five blanks, circle the most important unknown and discuss that question.

For another property decision, see Your down payment is in the market and you close in March. For a reminder that ownership costs can include more than the headline payment, read The adjuster says your roof is wear and tear. You have photos.

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