Compare the full cost of renting versus buying a home in Los Angeles over the years you plan to stay, including LA County property tax, insurance, HOA dues, maintenance, appreciation and the return your cash could earn if you keep renting.
Last updated: October 31, 2026. By the Apartments Club Editorial Team. See our Editorial Standards & Sources.
| Monthly mortgage (principal + interest) | |
| Total monthly cost of owning, year 1 (incl. tax, insurance, HOA, maintenance) | |
| Net cost of renting over your stay | |
| Net cost of buying over your stay (after selling) | |
| Better choice for your stay | |
| Breakeven: buying beats renting after |
Assumes 3% buyer closing costs, 6% selling costs, and that renters invest the down payment and closing costs at the return you enter. Ignores income-tax deductions and Prop 13 details (assessed value rises at most 2%/year; we apply tax to the purchase price grown 2%/year). Your inputs stay in your browser. Estimate only, not financial advice.
How it works
For each year the calculator adds up what you pay to own (down payment, closing costs, mortgage, property tax, insurance, HOA, maintenance) and subtracts the equity you keep when you sell (home value after appreciation, minus 6% selling costs, minus the remaining loan). For renting it adds up rent (rising each year) and subtracts what your down payment and closing costs would have earned invested. The breakeven is the first year buying comes out cheaper.
LA-specific inputs
- Property tax: California’s Proposition 13 sets the base rate at 1% of assessed value; voter-approved local bonds and assessments usually bring LA County bills to about 1.1%-1.25%. Check a specific parcel on the LA County Assessor portal.
- Assessed value growth: under Prop 13 the assessed value can rise at most 2% a year while you own.
- Insurance: homeowners insurance has become harder to get in parts of LA with wildfire risk; get real quotes before deciding.
- HOA: most LA condos carry monthly HOA dues; read our HOA documents checklist.
FAQ
How long do I need to stay in LA for buying to make sense?
It depends heavily on price, rate and appreciation. With high LA prices and rates near 6-7%, the breakeven is often many years; enter your own numbers above.
Does this include mortgage interest tax deductions?
No. Deductions depend on your tax situation and whether you itemize; ask a tax professional.
What if I put less than 20% down?
Lower the down payment field. Note that under 20% you will usually pay PMI, which this calculator does not add; use our mortgage calculator for PMI.
Is renting “throwing money away”?
No. Rent buys housing and flexibility; owning has its own unrecoverable costs (interest, tax, insurance, maintenance, selling costs). The calculator compares both.
Related: Rent vs. buy: how to decide · saving for a down payment while renting · first-time homebuyer programs · closing costs · all tools
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