What this calculator does
The San Francisco rent vs buy calculator compares the true cost of owning with the cost of renting over the number of years you expect to stay. It counts the costs that never come back — interest, property tax, insurance, upkeep, HOA or condo fees, and the cost of buying and selling — and credits the owner with the equity built. For renters, it credits the investment growth on the down payment they did not spend.
San Francisco has some of the highest rents and home prices in the country, with a large share of housing in older buildings covered by the city's rent ordinance. Neighborhoods range from the Mission and SoMa to the Sunset, Richmond and Bernal Heights, and fog belt western neighborhoods often cost less than central ones.
How to use it
- Enter a realistic home price and the rent for a comparable place.
- Set your down payment, mortgage rate and how long you plan to stay.
- Keep or change the local defaults: property tax (1.18% of value is Rate and Reason's rough San Francisco starting point), insurance, maintenance and HOA dues.
- Adjust rent growth, home price growth and investment return — these assumptions move the answer most.
- Read the break-even year to see how long you would need to stay for buying to win.
The formula
Net cost of buying = buyer closing costs + mortgage payments + property tax + insurance + maintenance + HOA − (sale price − remaining loan − selling costs − seller transfer taxes). Net cost of renting = total rent − investment growth on the down payment and closing costs. The cheaper option is the one with the lower net cost.
Worked example for San Francisco
Default San Francisco inputs with a 7-year stay:
| Item | Amount |
|---|---|
| Everything paid as an owner (down payment, closing, mortgage, tax, insurance, upkeep, HOA) | $1,149,732 |
| Equity you walk away with after selling | -$550,584 |
| Seller transfer taxes on the future sale (included above) | $11,992 |
| Net cost of buying | $599,147 |
| Rent paid | $422,968 |
| Investment growth on the down payment you did not spend | -$119,077 |
| Net cost of renting | $303,891 |
Over 7 years, renting comes out ahead by $295,256. Buying starts to win after about 28 years with these assumptions.
What tips the balance in San Francisco
Under Proposition 13, a San Francisco home is assessed at its purchase price and the assessed value can grow no more than 2% a year. The 2025-26 rate is 1.18268325%, combining the 1% base with voter-approved bonds. Owner-occupants can claim a $7,000 homeowners' exemption.
San Francisco's transfer tax applies one rate to the whole price based on price tiers, from $2.50 per $500 up to $30 per $500 at $25 million and above. The jump at $5 million, where the rate goes from 0.75% to 2.25%, is large enough to shape how sellers price homes. The seller customarily pays.
Common mistakes and tips
- Comparing rent with the mortgage payment alone, ignoring tax, insurance, upkeep and transaction costs.
- Assuming fast home price growth — try 0% or 1% to see the downside.
- Staying a short time: transaction costs usually make buying expensive for stays under about five years.
- Forgetting that a renter's savings only help if they are actually invested.
- Using a statewide property tax rate instead of the local one — San Francisco has its own rules, covered in the San Francisco property tax calculator.
Frequently asked questions
Is it better to rent or buy in San Francisco?
It depends on how long you stay and what you assume about prices and rents. With this calculator's default San Francisco inputs, renting comes out ahead by $295,256 over 7 years. Buying starts to win after about 28 years with these assumptions.
How long do I need to stay for buying to make sense?
Look at the break-even year in the result. It is the first year when the net cost of buying drops below renting with your assumptions.
Why include investment returns for renters?
Money not spent on a down payment and closing costs can be invested. Leaving that out makes renting look worse than it is.
Are San Francisco transfer taxes included?
Yes. The seller-side transfer taxes on the future sale come from the San Francisco rules in the site's tax engine, and buyer closing costs are an input you can change.
Sources
Disclaimer
This calculator provides estimates for educational purposes only and is not financial, tax, legal, real estate, or insurance advice. Consult a licensed professional before making decisions.