Rent vs. Buy Calculator in San Francisco (2026)
Is it better to rent or buy a home in San Francisco? See the break-even point and total cost comparison over your chosen time horizon.
Property Price
$1,040,000
65m² · $16,000/m²
Down Payment
$208,000
20% of purchase price
Monthly Mortgage
$5,412
6.1% rate · 25yr term
Monthly Rent
$3,800
City centre
🏠 Renting is cheaper over 10 years in San Francisco
With a 10-year horizon, the cost of buying (after equity) does not outweigh the cost of renting in San Francisco.
After 10 years: Renting saves approximately $47,706 vs buying.
Cumulative Cost Comparison — San Francisco
Net costs after accounting for property appreciation and investment returns on down payment.
| Year | Net Buy Cost | Net Rent Cost | Property Value | Verdict |
|---|---|---|---|---|
| 1 | $71,449 | $28,856 | $1,071,200 | 🔴 Rent |
| 2 | $109,846 | $57,908 | $1,103,336 | 🔴 Rent |
| 3 | $146,306 | $87,115 | $1,136,436 | 🔴 Rent |
| 4 | $180,740 | $116,431 | $1,170,529 | 🔴 Rent |
| 5 | $213,052 | $145,806 | $1,205,645 | 🔴 Rent |
| 6 | $243,144 | $175,185 | $1,241,814 | 🔴 Rent |
| 7 | $270,909 | $204,505 | $1,279,069 | 🔴 Rent |
| 8 | $296,238 | $233,700 | $1,317,441 | 🔴 Rent |
| 9 | $319,015 | $262,696 | $1,356,964 | 🔴 Rent |
| 10 | $339,117 | $291,410 | $1,397,673 | 🔴 Rent |
Monthly Cost Breakdown
Buying
Mortgage: $5,412
Maintenance: $1,300
Property Tax: $458
Total Monthly: $7,170
Does not include down payment of $208,000
Renting
Monthly Rent: $3,800
Annual Increase: +3% assumed
Opportunity Gain: Down payment invested at 7%/yr
Total Monthly: $3,800
Rent increases 3%/yr in projection
Can you afford to buy in San Francisco?
Monthly net income: $5,293
Monthly mortgage: $5,412
Mortgage-to-income ratio: 102.2%
🔴 Stretched — consider a higher deposit or longer term
Down payment savings needed: $239,200
At 20% savings rate, years to save: 18.8 years
Notes & Assumptions
This calculator uses the following assumptions for San Francisco in 2026: property price $16,000/m² × 65m², mortgage rate 6.1% over 25 years, 20% down payment, transaction costs 3.0%, annual maintenance 1.5%, property appreciation 3.0%/yr, rent inflation 3%/yr, opportunity cost of capital 7%/yr. Prop 13 caps property tax at 2%/yr after purchase. 30yr fixed ~6.1% (Bankrate Mar 2026).
Same calculator, other cities
Frequently Asked Questions
Is it better to rent or buy in San Francisco in 2026?
In San Francisco, renting is financially preferable over most time horizons due to the high price-to-rent ratio of 30x. Buying may still make sense for lifestyle reasons or if you plan to stay longer than 25 years.
How much do you need to earn to buy in San Francisco?
A typical 65m² apartment in San Francisco costs approximately $1,040,000 in 2026. With a 20% down payment of $208,000, the monthly mortgage is $5,412. Financial advisors recommend keeping mortgage payments below 28–35% of net monthly income, which implies a gross salary of at least $216,462 per year to comfortably afford this purchase in San Francisco.
What is the price-to-rent ratio in San Francisco?
The price-to-rent ratio in San Francisco is approximately 30x in 2026 — meaning it takes 30 years of rent to equal the purchase price. A ratio above 20 generally favours renting; below 15 generally favours buying. San Francisco's ratio of 30 suggests renting is likely more efficient for shorter horizons.
How this calculator works
This calculator compares the total cost of renting versus buying over a configurable time horizon. It includes mortgage payments, transaction costs, maintenance, property appreciation, rent inflation, and the opportunity cost of tying up capital in a down payment.
What's included
- Mortgage principal and interest payments
- Transaction costs (stamp duty, notary, etc.)
- Annual maintenance and property tax
- Property appreciation and rent inflation
- Opportunity cost of capital (7% default)
What's not included
- Renovation or major repair costs
- Home insurance premiums
- Tax relief on mortgage interest (varies by country)
- Emotional or lifestyle value of ownership
Data sources: Central bank mortgage rate data, local property price indices, Numbeo rental averages, and official transaction cost schedules. Updated for 2026.